Cyprus to get EUR 100 mln from EIB

 * But where will the money go? *

The European Investment Bank is to provide EUR 100 mln for key investments in Cyprus. The loan will be used to part-finance investments totalling EUR 1,177 mln in areas identified under the National Strategic Reference Framework for the 2007-2013 period, which include improving the competitiveness of the Cypriot economy, promoting sustainable development, and investing in skills and innovation.
It will therefore contribute to the smart, sustainable and inclusive growth of the Cypriot economy in line with the Europe 2020 strategy. This new loan complements a first loan of EUR 200 mln provided in 2012 for the same purpose.
The finance agreement was signed in Nicosia in a public ceremony by Harris Georgiadis, Minister of Finance, and EIB President Werner Hoyer in the presence of EIB Vice–President with responsibility for Cyprus, Mihai Tanasescu.
This loan “comes as a timely boost to the Cypriot economy and enhances the effective use of the EU grant funds allocated to the country,” said EIB President Hoyer.
“We are joining forces with the European Commission in supporting the priority areas of sustainable development and human capital and building upon the excellent working relationship with the Cypriot authorities. Our presence here today underlines the Bank’s commitment to economic development in Cyprus and our discussions with President Anastasiades aim to strengthen further our cooperation in view of the current economic circumstances.”
This second loan brings total EIB support for key investments in Cyprus to EUR 300 mln. EIB finance focuses on solid waste management, renewable energy, skills and innovation and urban development. The investments to be financed are grouped around selected priorities of two comprehensive Operational Programmes (OPs). The schemes are expected to contribute primarily to the achievement of objectives in sustainable development and competitiveness as well as employment, human capital and social cohesion. The investments will address long-term objectives of the Cypriot economy in the sectors of solid waste management, port infrastructure, renewable energy, knowledge economy, human capital, SMEs and sustainable urban development.
Examples of projects financed include the improvement of operations of 37 waste sites in the Pafos district, development of a Green Point Network in Cyprus, development of the Open University of Cyprus technological infrastructure and regeneration of Limassol’s town centre. The new loan will strengthen the productive base and competitiveness of the Cypriot economy and provide financial added value due to its long tenor and favourable terms. This loan is complemented by technical advice in the form of project preparation provided through the JASPERS initiative. The facility will unlock investments in key infrastructure and regional assets and is expected to assist the country's rate of absorption of EU Structural Funds.
In 2012, the EIB provided a total of EUR 398 mln in Cyprus, up from EUR 180 mln in 2011. The funds were directed at the real economy as an anti-crisis, competitiveness and growth support mechanism for the country.
Of the amount for 2012, EUR 200 mln was for schemes under the National Strategic Reference Framework, EUR 68 mln co-financed the Limassol-Amathus Sewerage and Drainage Project, EUR 130 mln went to the Electricity Authority of Cyprus for a new production unit at Vassilikos to cater for urgent electricity needs, while SMEs were supported by the European Investment Fund, the EIB subsidiary dedicated to SME support, through the JEREMIE initiative.