CYPRUS: Co-op gets 25 mln from EIB for SMEs

The Co-operative Cyprus Bank has signed its third borrowing facility with the European Investment Bank which will provide EUR 25 mln in low-interest loans to support small and medium-sized enterprises (SMEs).

Co-op General Manager Nicholas Hadjiyiannis said that the previous facility that had just closed, provided EUR 25 mln in loans to 116 businesses, at an average EUR 215,000 each, mostly in the tourism, services, trade, health, industry and agriculture sectors.

A novel facility that was well accepted by the market was the Jobs for Youth scheme, an incentive to hire young unemployed.

The Co-op bank, that is 99.5% owned by the government after a EUR 1.7 bln bailout three years ago, is planning a partial listing on the Cyprus Stock Exchange, with the aim to raise enough working capital and to pay own some 25 of the government loan.