Cyprus achieves record €372 million EIB Group financing in 2025, including new €125 million loan for public school modernisation

This article is published in association with European Investment Bank.

• In 2025, the EIB and EIF reached a record level of activity in Cyprus, providing a total of €372 million in financing.
• New €125 million EIB loan for public school modernisation, delivering over 140,000 m² of upgraded learning spaces.
• Investments supported key sectors including education, healthcare, cultural heritage, SME financing and infrastructure, helping to strengthen skills, innovation and regional cohesion.

Record EIB Group activity in Cyprus in 2025

In 2025, the European Investment Bank Group achieved a historic level of activity in Cyprus, providing a total of €372 million in financing, of which €354 million were EIB loans and €18 million mobilised by the EIF. Overall, EIBG support represented 1.02% of Cyprus’s GDP corresponding to an estimated per capita investment of €839.

The investments supported sustainable growth, climate action, innovation and social cohesion, with a strong focus on education, healthcare, infrastructure, cultural heritage and SMEs. Climate-related projects accounted for €226 million, while cohesion and regional development projects reached €149 million. Over the past five years, cumulative EIB Group financing in Cyprus has exceeded €1.5 billion, underlining sustained support for the country’s long-term development priorities.

New financing for public schools

The EIB also signed last December a €125 million loan to modernise public schools across Cyprus. The programme includes new school construction, expansion of existing facilities, and major renovations, delivering over 140,000 m² of modern learning spaces.

The project incorporates energy-efficient and sustainable building standards, enhancing learning environments, promoting regional cohesion, and supporting EU climate objectives.

“2025 has been a landmark year for our engagement with Cyprus,” said Morak Mora, EIB Vice-President. “The record €372 million financing, including the new €125 million loan for public schools, demonstrates our commitment to sustainable and inclusive growth. These investments improve education, foster innovation and green transition, while supporting regional cohesion and delivering tangible benefits for all Cypriots.”

Key projects and investments in 2025

Transport and mobility. The EIB provided a second tranche of €100 million to support Cyprus’s national road network, enhancing safety, accessibility and connectivity. The loan agreement covers investments in highways as well as regional and rural roads and includes works on bridges, tunnels and pedestrian and cycling infrastructure, complemented by modern traffic management and drainage systems.

Education. The EIB invested €125 million to modernise public schools across Cyprus. The programme supports the construction of new schools, the expansion of existing facilities and major renovations—delivering over 140,000 m² of modern learning spaces that improve the quality, safety and functionality of the public education estate.

Culture and heritage. The EIB supported cultural heritage with €72 million for the new Cyprus Archaeological Museum, a flagship investment expected to strengthen Cyprus’s cultural infrastructure and enhance the visitor experience.

Sustainable growth. The EIB also provided €50 million to support Cyprus’s participation in the THALIA 2021–2027 Operational Programme, promoting smart, green and inclusive growth through EU co‑financed investments.

Health and scientific excellence. The EIB increased its support to the Cyprus Institute of Neurology and Genetics (CING) by an additional €5 million, bringing total EIB backing for the Institute to €31 million. The financing supports new facilities, advanced laboratory and medical equipment, research and development activities, and postgraduate education—reinforcing CING’s role in healthcare provision, medical research and talent development.

SMEs and start‑ups. To improve access to finance for smaller businesses, the European Investment Fund (EIF) launched its first €5 million InvestEU guarantee with Eurobank Ltd. The initiative is expected to mobilise loans of up to €62.5 million for SMEs and start‑ups, supporting entrepreneurship, innovation and job creation.

Overall, 2025 investments strengthened human capital, infrastructure and innovation, laying the foundations for a greener, more inclusive and competitive Cyprus.

Background information    

The EIB Group   

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations. 

The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium size businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs. 

In 2023, the EIF together with six member states (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund of funds to scale-up innovative startups. This initiative has already enabled the creation of  13 European venture capital mega-funds and scaled up 38 companies, including 11 unicorns (with more than €1 billion in capital).