The European Investment Bank (EIB) reported on Wednesday on its strong engagement in Cyprus for 2022, with new financing signed reaching a total of €250 million, all of which was invested in green projects, CNA reports.
During the year, the EU bank committed €150 million in support for a large-scale urban regeneration project which aims to make Cypriot municipalities greener, boost the economy, and improve the quality of everyday life. Additionally, there was a heavy focus on fostering local entrepreneurship with a €100 million agreement under the Cyprus Entrepreneurship Fund II, a risk-sharing instrument, which aims to support local SMEs and MidCaps during these challenging times. Moreover, the EIF agreed to manage the newly launched Cyprus Equity Fund (CEF) – the first private equity fund in the country.
“I am pleased to note that EIB’s continuous strong partnership with Cyprus has resulted in a total signature volume of €250 million in 2022. Our partnership has been instrumental in our efforts to promote new investments for entrepreneurship, sustainable development, and the regeneration of urban areas. Specifically, under the CYPEF II agreement, we aim to facilitate new long-term financing in order to help our SMEs and MidCaps in this exceeding difficult economic climate. In addition, with the agreement for new urban investments, we aim to regenerate and upgrade urban areas as well as promote greener communal spaces, enabling Cyprus to reach its sustainability targets,” said Constantinos Petrides, Cypriot Minister of Finance.
EIB Group support for Cyprus in 2022 represented 0.94% of GDP, second only to Greece among all EU countries, while the EU bank’s outstanding overall exposure to date moved to approximately 12% of the country’s GDP, putting Cyprus at the top of all EU countries in which the EIB is operating in terms of EIB support, per capita. The latest support, and a strong history of activity in Cyprus, underline the EIB Group’s commitment, especially during some challenging recent years for the Cypriot economy. Between 2013 and 2022, the EU bank’s lending activity in Cyprus reached a total of €2.5 billion.
“In 2022, the EIB Group exceeded its targets in Cyprus, with vital urban infrastructure investment agreed which will make Cypriot municipalities greener, boost the economy, and improve people’s lives. On top of that, the package of support for SMEs and MidCaps is vital for local businesses during these tough economic times, enhancing access to alternative sources of finance for start-ups and innovative companies. In addition to the financial support, the number of important advisory assignments, especially in the transport and energy sectors, will help accelerate the country’s adoption of climate-friendly investments,” said Lilyana Pavlova, EIB Vice President responsible for lending in Cyprus.
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