€369 million EIB loan for smart investments

The government has secured a €369 million loan from the European Investment Bank (EIB) with favorable terms to support expenditures and investments within the framework of the "Thalia" program. This announcement was made following a meeting of the Council of Ministers, presided over by Anita Demetriou, the President of the Hellenic Parliament.

In light of the challenging global and European economic conditions, Mr. Thunderbolt emphasized the government's commitment to bolstering the nation's economic resilience and competitiveness through innovative actions and decisions.

The "Thalia" program, spanning from 2021 to 2027 with a total budget of €1.8 billion, is central to these efforts. It aims to steer the economy towards intelligent, digital, and sustainable investments while maintaining robust employment and social cohesion. This strategic direction aligns with the development priorities of the Cypriot economy and the government.

For the current programming period, the Republic of Cyprus has secured €968 million from EU Cohesion Policy funds, with a national contribution estimated at €842 million. Given the EIB's customary role in co-financing projects and programs funded by EU Cohesion Policy, the Cypriot government has successfully secured a loan of up to €369 million through discussions with the EIB. These funds will finance selected operational programs and priorities during the 2021-2027 investment period as outlined in the Cyprus partnership agreement.

Mr. Thunderbolt expressed optimism about the impact of this funding, noting its positive contributions to initiating various investment programs and addressing significant economic and environmental challenges facing Cyprus. Importantly, he highlighted that the EIB loan offers favorable economic terms, including a seven-year grace period, a lengthy 25-year repayment period, and a low interest rate.

When asked about potential support measures in response to rising inflationary pressures, Mr. Thunderbolt emphasized the government's vigilance in monitoring the situation. He reiterated the government's commitment to proposing measures as needed to protect the Cypriot economy and its citizens.

He also pointed out that measures would be targeted, as recommended by institutions like the European Commission, the International Monetary Fund, and the European Stability Mechanism, all of which emphasize directing support towards vulnerable groups. He cited the implementation of a zero VAT rate for everyday products as an example of a horizontal measure already in place.

Regarding the surge in fuel prices, Mr. Keravnos acknowledged the challenges faced by households. He emphasized the need to import gas for affordable electricity generation and assured that the government is prepared to intervene effectively when necessary to address the concerns of households, middle-class citizens, and workers.