€62.5M to Boost SMEs and Startups in Cyprus
The first InvestEU guarantee agreement in Cyprus aims to ease access to financing, support innovation, and strengthen local economic growth.
The European Investment Fund (EIF) and Eurobank signed on Tuesday the first InvestEU Guarantee Agreement in Cyprus, unlocking €62.5 million in financing for small and medium-sized enterprises (SMEs) and startups.
Supported by the EU’s InvestEU program, the agreement is designed to simplify access to credit, reduce collateral requirements, extend repayment terms, and open new funding opportunities for innovative businesses.
Kyriakos Kakouris, Vice-President of the European Investment Bank, emphasized the significance of this milestone: “With this first InvestEU agreement in Cyprus, we are opening new pathways for Cypriot entrepreneurs. Europe is here to make financing simpler, fairer, and more accessible.”
He noted that SMEs and startups across Cyprus will now have the tools to invest, grow, and create new jobs, reinforcing both the local economy and Europe’s competitiveness.
Marjut Falkstedt, Chief Executive of the EIF, highlighted the broader impact of the program: “InvestEU provides the essential tools to make financing more accessible across Europe. This first agreement in Cyprus is an excellent example of how we can improve business conditions, particularly for startups, generating a strong multiplier effect on the economy.”
Andreas Petsas, Deputy CEO of Eurobank, underlined the bank’s commitment: “SMEs are the backbone of our economy. With this agreement, we are not only supporting businesses but also job creation, innovation, and the resilience of the Cypriot economy. Our collaboration with the EIB Group marks an important step in strengthening the local market.”
The agreement builds on the EIB Group’s long-standing commitment to Cyprus. Since 1981, the group has invested over €5.5 billion in the country, focusing on energy security, affordable housing, SMEs, innovation, water infrastructure, and climate resilience.
Beyond immediate financial relief, this new guarantee lays the foundation for future collaborations, further enhancing Cyprus’s economic potential and reinforcing the EU’s determination to foster growth and innovation.
