The European Investment Bank Group (EIB Group) has announced the first InvestEU Guarantee transaction in Cyprus, marking a significant step in providing EU-backed financing to local businesses. The agreement, signed between the European Investment Fund (EIF) and Eurobank, will mobilize up to €62.5 million in new loans for small and medium-sized enterprises (SMEs) and start-ups across the country.
This financing package aims to improve access to credit for Cypriot entrepreneurs by reducing collateral requirements, offering longer repayment periods, and opening bank financing to start-ups, a segment traditionally excluded from credit. These measures are designed to help viable businesses grow, invest, and create jobs, thereby strengthening the local economy.
EIB Vice-President Kyriakos Kakouris emphasized that the EIF InvestEU agreement will make financing simpler, fairer, and more inclusive, enabling SMEs and start-ups to expand and enhance Europe’s competitiveness. Similarly, EIF Chief Executive Marjut Falkstedt highlighted that the InvestEU programme provides tools to improve financing conditions across Europe, particularly benefiting start-ups and fostering economic growth in Cyprus.
Eurobank Deputy CEO Andreas Petsas noted that SMEs are the backbone of the economy, and the new agreement will support sectors including energy, health, tourism, and transport. The InvestEU Programme consolidates EU financial instruments under a single framework, making financing more efficient and flexible while focusing on sustainability, innovation, competitiveness, and social inclusion.
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