International Financial Institutions (IFIs) play an important role in global cooperation and development as well as in addressing global challenges at certain times. Such IFIs, like the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) mainly in Europe and the World Bank, globally, provide support and finance to large scale projects in the countries involved contributing, thus, to economic stability, growth and reduction of unemployment.
The Republic of Cyprus, through the Ministry of Finance, is working closely with the main IFIs, though as a member state (shareholder) by contributing to their share capital, participating in their governance and in the formation of their developmental policies, with the purpose to increase growth and development in Less Developed Countries, improve the international economic cooperation, alleviate poverty, address climate change, etc.
The Ministry of Finance places great importance to ensure access and full utilization of finance offered by IFIs to support the Cypriot economy. Such organizations, which operate today in Cyprus, are the EIB, the Council of Europe Development Bank (CEB) and the EBRD.
Cyprus is also a member of the World Bank Group and its affiliated organizations: International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), International Development Association (IDA), the Multilateral Agency Investments and insurance Agency (MIGA), the International Centre for Settlement of Investment Disputes (ICSID), as well as the International Monetary Fund (IMF).
In 2017, Cyprus became a regional member of the Asian Investment and infrastructure Bank (AIIB).
The Directorate of Administration and Finance of the Ministry of Finance is responsible for establishing cooperation and participating in the institutional proceedings of IFIs.