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Press Release - EIB Group backs EUR 303 million of COVID economic resilience, road safety and fintech investment in Cyprus in 2021



4th March 2022

EIB Group backs EUR 303 million of COVID economic resilience, road safety and fintech investment in Cyprus in 2021

  • EUR 170m EIB and EIF backing to help for Cypriot business overcome pandemic
  • Cyprus remains leading beneficiary of EIB engagement in Europe relative to GDP
  • EIB confirms future business, urban development and renewable energy investment

New European Investment Bank Group financing for priority investment in Cyprus last year totalled EUR 303 million, a 24% increase from 2020. This includes the largest ever European Investment Fund engagement in Cyprus to enhance financing for Cypriot companies and overcome business challenges related to the COVID-19 pandemic. 

2021 represented the fourth largest support for transformational projects in 40 years of EIB Group engagement in the country. New included financial support for business investment, backing improvements to road safety across the national road network and the EIB’s largest ever support for financial services in Cyprus, through EUR 15 million for insurance company Hellas Direct. 

Cyprus remains the largest beneficiary of EIB support, per capita, of any country in Europe with outstanding EIB exposure totalling EUR 2.7 billion, or 13% of national GDP. 

The EIB’s annual results for Cyprus were announced in Nicosia earlier today by Finance Minister Constantinos Petrides and Lilyana Pavlova, European Investment Bank Vice President. 

“The European Investment Bank Group is a key partner for Cyprus and the close cooperation between the EIB, EIF and Cypriot public and private sectors partners has once again enabled Cyprus to be the leading EU beneficiary of EIB engagement per capita. New long-term and targeted EIB financing is ensuring that Cypriot business can overcome challenges unleased by the COVID-19 pandemic and invest in innovation. Our goal, but also our obligation, is to fully utilise all the available development instruments, such as those provided by the EIB, and I am optimistic, as well as certain, that this intense activity on the part of the Bank in Cyprus will continue in the coming years and I’m confident that EIB will continue to act as a reliable partner for sound projects throughout the EU.” said Constantinos Petrides, Minister of Finance of the Republic of Cyprus and Governor of the European Investment Bank. 

“The strength of EIB Group engagement in Cyprus in 2021, with EUR 303 million of new business, road safety and fintech financing, represented once of the largest backing for public and private investment in 31 years of operations. The EIB Group is committed to supporting priority investment in Cyprus in close cooperation with Cypriot partners. Last year was a record for European Investment Fund backing for targeted business financing, enabled by Cyprus being the first country to join the EIB Group’s pandemic economic response initiative, the European Guarantee Fund. It is great to be back here in Nicosia. During this visit I have seen how the EIB is helping to transform higher education in Cyprus and ensure that future engagement unlocks new opportunities for Cyprus in the years ahead.” said Lilyana Pavlova, EIB Vice President. 

EUR 170 million EIB Group support for business investment, including EIF record

Last year the EIB and EIF provided EUR 170 million of new targeted business financing to support investment by Cypriot companies during challenging times. 

This includes EUR 100 million EIB backing for local SME and midcap companies under the second Cyprus Entrepreneurship Scheme following successful roll-out of the first package. 

2021 represented the largest ever engagement by the European Investment Fund in Cyprus. New investment by Cypriot companies will benefit from EUR 70 million of new European Investment Fund financing to be managed by Hellenic Bank and Eurobank Cyprus. 

EUR 112 million record backing for road safety and priority transport investment

2021 also represented the largest ever EIB support for transport investment in Cyprus. New financing agreed last year will speed-up roll-out of road safety cameras at accident blackspots across the country and enable road improvements in Nicosia, Limassol, Paphos and Vasilikos. 

First venture debt financing supporting Hellas Direct innovation

Last year the EIB agreed to support research and development and business expansion investment by Hellas Direct through the first EIB venture debt financing for a Cypriot company. 

The new fintech investment will expand provision of technology led insurance services across the region and adapt financial services to a post-Covid world. 

Future support for business investment, urban development and renewable energy

In the coming months the EIB expects to confirm new private financing initiatives with Cypriot banking partners under the Cyprus Entrepreneurship Fund risk-sharing initiative. 

The EIB is also currently finalising backing for urban investment and renewable energy generation projects. 

The EIB has provided more than EUR 5 billion for private and public investment in Cyprus since the start of operations in the country in 1981. 

Background information: 

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.


Press contacts:

European Investment Bank

Richard Willis, r.willis@eib.org, Tel.: +352 4379 82155, +352 621 555 758

Website: www.eib.org/press - Press Office: +352 4379 21000 – press@eib.org


Ministry of Finance

Antigoni Kazamia, akazamia@papd.mof.gov.cy, Tel.: +357 99450836

Website: http://mof.gov.cy/en/press-office/minister-s-press-releases - Press Office: +357 22601109, +357 22601270

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