The European Investment Bank (EIB) and the City of Iraklio in Crete signed an agreement yesterday for a 50-million-euro loan to the local authority of the island’s biggest city aimed at improving quality of life.

The funds from the deal, signed by EIB Vice President Plutarchos Sakellaris and Iraklio Mayor Yiannis Kourakis in Luxembourg, will be used for projects relating to public spaces, road safety measures, environmental protection, cultural heritage and municipal buildings.

This pioneering funding will form part of the local authority’s “Green Iraklio 2008-2013” program aimed at the city’s urban development, which in particular focuses on energy-saving schemes and the refurbishment of community buildings.

Sakellaris expressed optimism that the program will also sustain growth through the further development of cultural tourism.