Press Release
• 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 s 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.”
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.”
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.
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.
