EIB Group and Eurobank Join Forces to Provide EUR62.5 Million in New Financing to Cypriot SMEs and Start-Ups

Strategic Insights -

The European Investment Bank (EIB) Group and Eurobank have announced their first InvestEU Guarantee transaction in Cyprus, marking a significant milestone in increasing EU-backed financing for Cypriot businesses. The agreement, signed between the European Investment Fund (EIF) and Eurobank, provides a loan portfolio guarantee that will mobilise up to EUR62.5 million in new loans for Cypriot small and medium-sized enterprises (SMEs) and start-ups. This EU-supported financing aims to make a tangible difference for Cypriot entrepreneurs by cutting collateral requirements, offering longer repayment periods, and opening bank financing to start-ups.

Key Takeaways:

  • The EIB Group and Eurobank have signed their first InvestEU Guarantee transaction in Cyprus, providing EUR62.5 million in new financing for SMEs and start-ups.
  • The agreement aims to support Cypriot entrepreneurship by cutting collateral requirements, offering longer repayment periods, and opening bank financing to start-ups.
  • The EIF and Eurobank will provide the guarantee for a loan portfolio, backed by an EIF guarantee.
  • The European Investment Bank Group has invested over EUR5.5 billion in Cyprus since the first operation in 1981.
  • The bank's priority sectors in Cyprus are energy security, affordable housing, SMEs and innovation, water and climate resilience.
  • Eurobank Deputy CEO Andreas Petsas stated that supporting SMEs means supporting jobs, innovation, and the overall resilience of Cyprus' economy.

Statistics:

  • EUR62.5 million in new financing for SMEs and start-ups in Cyprus.
  • Over EUR5.5 billion invested by the EIB Group in Cyprus since 1981.
  • Approximately 60% of annual EIB Group investments support climate action and environmental sustainability.
  • Almost half of the EIB's financing within the EU targets cohesion regions, where per-capita income is below the EU average.
  • The EIB Group signed nearly EUR89 billion in new financing for over 900 high-impact projects in 2024.

Sources:

  • European Investment Bank, "EIB Group and Eurobank join forces to channel EUR62.5 million in new financing to Cypriot SMEs and start-ups."
  • European Investment Fund, "InvestEU Programme"
  • EIB, "The European Investment Bank Group Overview"