The European Investment Bank Group (EIB Group) announced the first InvestEU Guarantee transaction in Cyprus, marking a major milestone in bringing EU-backed financing closer to Cypriot businesses.
The agreement, signed between the EIF and Eurobank, provides a loan portfolio guarantee that will mobilise up to 62.5 million euros in new loans for Cypriot small and medium-sized enterprises (SMEs) and start-ups.
This EU-supported financing will make a tangible difference for Cypriot entrepreneurs by:
- Cutting collateral requirements, helping viable businesses that lack sufficient guarantees,
- Offering longer repayment periods, giving companies time and flexibility to grow,
- Opening bank financing to start-ups, a segment traditionally excluded from credit.
EIB Vice-President Kyriakos Kakouris, said: “With this first EIF InvestEU agreement in Cyprus, we are opening new doors for entrepreneurs. Europe is here to make financing simpler, fairer and more inclusive. SMEs and start-ups across Cyprus will now be better equipped to invest, expand and create jobs, strengthening the local economy and Europe’s competitiveness.”
EIF Chief Executive Marjut Falkstedt added: “The InvestEU programme gives us the tools to make financing more accessible across Europe, and it is great to be able to announce this first agreement in Cyprus. Ultimately, this will mean better financing conditions for Cypriot businesses, and in particular start-ups, with all the knock-on effect that can have on the economy.”
