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EIB stands ready to support Cyprus

12/04/2022 08:23

President of the European Investment Bank (EIB) Werner Hoyer said Monday that the Bank stands ready to support investment in Cyprus, to reduce the impact and economic shocks triggered by the war in Ukraine.

Speaking to the press after a meeting in Nicosia with President of the Republic of Cyprus Nicos Anastasiades and Finance Minister Constantinos Petrides, Hoyer said that the EIB supports countries impacted by the war in Ukraine like Cyprus and works with national authorities, institutions and other parties to make financial and technical assistant urgently available to these countries and regions

“We stand ready to support investment here in Cyprus to reduce the impact and economic shocks triggered by the war” he said and added that Cyprus could also benefit from funds of €4 billion approved by the banks for countries receiving refugees from Ukraine.

Hoyer noted that the war in Ukraine has not only unleashed devastation in the country but triggered economic, energy, food and tourism shocks around the world, also in Cyprus. He added that thanks to the unanimous support of the 27 EIB member states including Cyprus, the EIB has been able to approve and disburse €668 million of immediate financial support for Ukraine and stands ready to do more in this respect.

Regarding Cyprus he stressed that new EIB financing for priority investment in Cyprus last year totalled €303 million, representing a 24% increase from 2020. Cyprus, he added, remains the largest beneficiary of EIB support, per capita, of any country in Europe with outstanding EIB exposure totalling € 2.7 billion, or 13% of national GDP.

He also said that 2021 also represented the largest ever engagement by the EIB in Cyprus, targeting particular mid-caps and small business. He furthermore noted that Cyprus has been the first country to join the EIB’s pandemic economic response initiative called the European Guarantee Fund.

Last year, he went on to say, the EIB and the European Investment Fund provided €170 million of new targeted business financing to support investment by Cypriot companies during challenging times. This includes €100 million EIB backing for local SME and midcap companies under the second Cyprus Entrepreneurship Scheme following successful roll-out of the first package.

Hoyer also said that the EIB financing agreed last year included financial support for business investment, backing improvements to road safety across the national road network and the EIB’s largest ever support for financial services in Cyprus, through €15 million for insurance company Hellas Direct.

EIB and Cyprus discuss additional investment opportunities

Cypriot Minister of Finance said that they discussed new and additional investments that are planned in key sectors of the economy which include new long-term financing in order help SMEs and MidCaps overcome the recent economic challenges, urban infrastructure projects, innovation projects, and renewable energy.

“In this respect, I am pleased that an agreement was reached with the European Investment Fund regarding the Cyprus Equity Fund, the first equity fund in the country supported by public resources, a few days ago”, he said.

He added that the Government will continue to support and strengthen this initiative for the challenges that Cyprus has to face in the near future and especially regarding the green transition and independence from fossil fuels.

Petrides welcomed the support offered by EIB to Cyprus to mitigate the economic consequences by the recent geopolitical developments and the evolution of the pandemic.

“As a result of the close collaboration with EIB services, in 2021 Cyprus has again maintained the position of the most benefited country in Europe in terms of GDP, as regards EIB financing, an increase of 24% since last year, which demonstrates that EIB is a committed and reliable partner and has supported our country’s growth in times of crisis. It is worth to mention that almost half of EIB’s exposure to Cyprus was approved after the 2013 financial crisis”, Petrides noted.

He also expressed his appreciation to the President for the EIB’s Group strong commitment to Cyprus, both through the Bank and its subsidiary, the European Investment Fund.