Cyprus: The EIB Group and Eurobank join forces to channel €62.5 million in new financing to SMEs and start-ups

This article is published in association with European Investment Bank.

• First InvestEU Guarantee transaction in Cyprus, signed by the European Investment Fund (EIF) and Eurobank
• €62.5 million in new financing for SMEs and start-ups, backed by an EIF guarantee
• Lower collateral, longer maturities and dedicated support for start-ups to boost entrepreneurship

The European Investment Bank Group (EIB Group) today announced the first InvestEU Guarantee transaction in Cyprus, marking a major milestone in bringing EU-backed financing closer to Cypriot businesses.

The agreement, signed between the EIF and Eurobank , provides a loan portfolio guarantee that will mobilise up to €62.5 million in new loans for Cypriot small and medium-sized enterprises (SMEs) and start-ups.

This EU-supported financing will make a tangible difference for Cypriot entrepreneurs by:

• Cutting collateral requirements, helping viable businesses that lack sufficient guarantees,
• Offering longer repayment periods, giving companies time and flexibility to grow,
• ·Opening bank financing to start-ups, a segment traditionally excluded from credit.

EIB Vice-President Kyriakos Kakouris, said: “With this first EIF InvestEU agreement in Cyprus, we are opening new doors for entrepreneurs. Europe is here to make financing simpler, fairer and more inclusive. SMEs and start-ups across Cyprus will now be better equipped to invest, expand and create jobs, strengthening the local economy and Europe’s competitiveness.”

EIF Chief Executive Marjut Falkstedt added: “The InvestEU programme gives us the tools to make financing more accessible across Europe, and it is great to be able to announce this first agreement in Cyprus. Ultimately, this will mean better financing conditions for Cypriot businesses, and in particular start-ups, with all the knock-on effect that can have on the economy.”

About InvestEU:

The InvestEU Programme provides the European Union with crucial long-term financing by mobilising public and private funds in support of EU policy priorities. It brings together the multitude of EU financial instruments under one roof, making financing simpler, more efficient and more flexible. InvestEU focuses on key priorities such as sustainability, innovation, competitiveness and social inclusion.

Eurobank Deputy CEO Andreas Petsas added: “We place great emphasis on small and medium-sized enterprises, which remain the backbone of our economy. Supporting their growth means supporting jobs, innovation, and the overall resilience of Cyprus economy. We are proud to sign our first agreement with the EIBG, securing funds that will target key sectors such as energy, health, tourism, and transport, among others.”

Background information:

EIF

The European Investment Fund (EIF) (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, a stronger Europe in a more peaceful and prosperous world and Europe’s capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

Approximately half of the EIB’s financing within the EU targets cohesion regions, where per-capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.

Since the first operation in 1981, the EIB Group has invested over €5.5 billion in Cyprus and remains a key partner in the country’s sustainable growth – further underlined by strengthening its local presence and leadership. The bank’s priority sectors in Cyprus are energy security, affordable housing, SMEs and innovation, water and climate resilience.

About Eurobank

Eurobank Ltd is one of the leading financial institutions in Cyprus, managing €28 billion in total assets with strong market shares in deposits (41%) and loans (35%). With a workforce of around 3,000 employees and a strong focus on innovation, the Bank offers comprehensive and competitive products across retail, corporate and investment banking, asset management, international financing, and bancassurance. The Group also includes ERB Cyprialife and ERB Insurance, leaders in Cyprus’ insurance sector.