EIB loan to Cyprus for smart investments
The Cypriot government has secured a 369-million-euro loan from the European Investment Bank on favorable terms to support expenditure and investments within the framework of the Thalia program. This announcement was made following a meeting of the Council of Ministers, presided over by Parliament Speaker Annita Demetriou.
In light of the challenging global and European economic conditions, Finance Minister Makis Keravnos emphasized Nicosia’s commitment to bolstering economic resilience and competitiveness through innovative actions and decisions.
Thalia, spanning from 2021 to 2027 with a budget of €1.8 billion, is central to these efforts. It aims to steer the economy toward smart, digital and sustainable investments while maintaining robust employment and social cohesion. This strategic direction aligns with the growth priorities of the Cypriot economy and the government.
For the current programming period, 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 the EU’s Cohesion Policy, Nicosia 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.
Keravnos 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, Keravnos emphasized the government’s vigilance in monitoring the situation and its commitment to proposing measures as needed to protect the Cypriot economy and 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 to vulnerable groups.
