CYPRUS: EIB approves EUR 170 mln in new loans to boost business sector

The European Investment Bank (EIB) approved two loan schemes for Cyprus totalling €170 mln, strengthening government support to small and medium sized enterprises (SMEs) while boosting private sector growth and competitiveness.

A Finance Ministry statement said the first loan of €130 mln is in the context of the well-known EIB scheme implemented in Cyprus since 2014 providing cheap and long-term funding to the private sector backed by government guarantees.

“The scheme has had great success, so far deploying funding of approximately €600 million to the private sector, promoting investments exceeding €500 million,” the Finance Ministry said.

The second loan of €40 mln is to bolster the financing tool promoted by the government in energy efficiency and renewable energy, which is provided to SMEs, households and local government authorities, contributing to the attainment of Cyprus’ energy targets in the coming years.