By Georgiana Sofroniou
Copyright cyprus-mail
Eurobank partners with EIF to improve access to business loans
The European Investment Fund (EIF) and Eurobank (Cyprus) on Tuesday announced the launch of the first InvestEU Guarantee transaction in Cyprus, unlocking €62.5 million in new financing for small and medium-sized enterprises and start-ups.
The agreement, signed by the EIF and Eurobank, will provide a portfolio guarantee designed to mobilise loans for Cypriot businesses, particularly supporting start-ups traditionally excluded from bank credit.
“This first EIF InvestEU agreement in Cyprus opens new doors for entrepreneurs,” said Kyriakos Kakouris, Vice-President of the European Investment Bank.
“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,” he added.
The EU-backed financing aims to cut collateral requirements, helping viable businesses that may lack sufficient guarantees, and to offer longer repayment periods, providing companies with time and flexibility to grow.
“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,” said Marjut Falkstedt, Chief Executive of the EIF.
“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,” she added.
“We place great emphasis on small and medium-sized enterprises, which remain the backbone of our economy,” said Andreas Petsas, Deputy CEO of Eurobank.
“Supporting their growth means supporting jobs, innovation, and the overall resilience of Cyprus economy,” he added.
“We are proud to sign our first agreement with the EIBG (European Investment Bank Group), securing funds that will target key sectors such as energy, health, tourism, and transport, among others,” he Petsas stated.
InvestEU provides the EU with long-term financing by mobilising public and private funds in support of EU policy priorities.
The programme combines multiple EU financial instruments under a single framework, making financing simpler, more efficient and flexible while supporting sustainability, innovation, competitiveness and social inclusion.
It should be noted that the European Investment Fund is part of the European Investment Bank Group, with a core mission to help Europe’s micro, small and medium-sized enterprises access finance.
The EIF develops venture and growth capital, guarantees and microfinance instruments specifically targeting these businesses.
In doing so, it promotes EU objectives supporting innovation, research and development, entrepreneurship, growth, and employment.
The European Investment Bank (EIB) is the EU’s long-term lending institution, owned by member states.
It finances projects in areas including climate action, digitalisation, security, cohesion, agriculture, social infrastructure, and the capital markets union.
The EIB Group, which includes the EIF, signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, strengthening Europe’s competitiveness and security.
Around half of the EIB’s financing within the EU focuses on regions where per-capita income is below the EU average, while almost 60 per cent of annual investments support climate action and sustainability.
Since its first operation in 1981, the EIB Group has invested more than €5.5 billion in Cyprus and remains a key partner in the country’s sustainable growth.
The bank’s priority sectors in Cyprus include energy security, affordable housing, SMEs and innovation, water, and climate resilience.
