Sign in Subscribe
Banks (Finance)

Cyprus Secures Pound 100 Million Loan Tranche, Launches Sustainable Transport Projects

Strategic Insights

— 2 min read

Cyprus has finalized the signing of the second tranche of a Pound 200 million loan agreement with the European Investment Bank (EIB), securing an additional Pound 100 million to fund road infrastructure and sustainable transport projects across the island. This move is part of a broader Pound 400 million national investment program aimed at improving connectivity, road safety, and climate resilience by 2029. According to Kyriakos Kakouris, EIB vice president, the new tranche represents a shared commitment to creating better, safer, and more sustainable infrastructure that will significantly enhance the daily lives of Cypriot people.

Key Takeaways:

  • The Pound 200 million loan agreement with the European Investment Bank marks the second tranche, securing an additional Pound 100 million for sustainable transport projects.
  • The investment aims to improve connectivity, road safety, and climate resilience across the island through 2029.
  • The project represents a shared commitment to creating better, safer, and more sustainable infrastructure for the Cypriot people.
  • Kyriakos Kakouris emphasized that infrastructure is a catalyst of social cohesion, facilitating access, communication, and development.
  • The Cyprus Banks Association has announced measures aimed at providing immediate relief to households and businesses affected by the devastating wildfire in Limassol.
  • The association has offered to suspend loan repayment for affected households and businesses for up to six months.
  • The Central Bank of Cyprus (CBC) has published its latest quarterly financial accounts, showing continued growth in financial assets and a reduction in household and corporate debt ratios.
  • Insurance companies hold Pound 5.7 billion in financial assets, with 46% invested in equities.
  • Pension funds' financial investments reached Pound 4.6 billion, with 55% invested in equities.
  • Seasonally adjusted unemployment rate in Cyprus stands at 3.8 percent in June 2025, down from 4.9 percent in June 2024.
  • The euro area unemployment rate was 6.2 percent in June 2025, stable compared to May 2025 and down from 6.4 percent in June 2024.
  • Cyprus-based Easternmed Real Estate Capital Plc has completed the purchase of a property in Switzerland for approximately Pound 29.6 million.
  • The Cyprus Chamber of Commerce and Industry (Keve) has clarified the origins and purpose of the "Minds in Cyprus" platform, following "misleading announcements".
  • The Industrial Production Index in Cyprus reached 113.7 units in May 2025, reflecting an annual increase of 1.7 percent compared to May 2024.
  • Sepaga E.M. I. has announced a new partnership with Cellock Ltd and the launch of the 7 Seas E-Wallet, a mobile banking solution designed specifically for the shipping industry.
  • Global container losses at sea rose to 576 in 2024, more than double the record-low 221 containers lost in 2023.
  • Battery-only electric vehicle (BEV) registrations in Cyprus more than doubled in 2023, though their presence on the roads remains well below the EU average.
  • The total assets under management (AUM) of Collective Investments in Cyprus reached Pound 10.7 billion during the first quarter of 2025, a 6.64 percent increase from the previous quarter.

Statistics:

  • Pound 100 million secured from the second tranche of the Pound 200 million loan agreement with the European Investment Bank.
  • 6.64 percent increase in total assets under management (AUM) of Collective Investments in Cyprus from the previous quarter.
  • 3.8 percent seasonally adjusted unemployment rate in Cyprus in June 2025, down from 4.9 percent in June 2024.
  • 6.2 percent euro area unemployment rate in June 2025, stable compared to May 2025 and down from 6.4 percent in June 2024.
  • 113.7 units Industrial Production Index in Cyprus in May 2025, reflecting an annual increase of 1.7 percent compared to May 2024.

Sources:

  • Cyprus Finance Ministry
  • European Investment Bank (EIB)
  • Eurostat
  • Cyprus Banks Association
  • Central Bank of Cyprus (CBC)
  • Easternmed Real Estate Capital Plc
  • Cyprus Chamber of Commerce and Industry (Keve)
  • Sepaga E.M. I.
  • World Shipping Council (WSC)
  • Eurostat
  • Cyprus Securities and Exchange Commission (CySEC)

Read more