EIB President confirms EUR 362 million for transport investments and corporate finance
Werner Hoyer, President of the European Investment Bank and Alain Godard, Managing Director of the European Investment Fund, visited Cyprus today and joined Constantinos Petrides, Minister of Finance, Yiannis Karousos, Minister of Transport, Communications and Works, and Phivos Stasopoulos, Managing Director of the Hellenic Bank, to confirm details of â¬ 362 million in new financing for priority investments in transport and corporate finance.
âTwo financing contracts were signed today between the Republic of Cyprus and the EIB. The first concerns the signing of a loan agreement for a maximum amount of 112 million euros for the financing of the national roads project III, which consists of the construction and improvement of roads and highways which are prioritized by the Republic of China as strategic roads of national importance, also including investment in fixed and mobile speed cameras. Today’s agreement is of great importance as the operation is expected to directly contribute to the local and wider economy of Cyprus mainly through time savings for transport users and costs of operating the vehicles. vehicles, improved reliability and safety, as well as wider impacts on productivity, employment and induced investments â, said Constantinos Petrides, Minister of Finance of the Republic of Cyprus and Governor of the European Investment Bank .
âThe second signature concerns the loan agreement in the amount of â¬ 100 million for the financing of SMEs through the Cyprus Entrepreneurship Fund (CYPEF). This program, which was first put into effect in 2014, was one of the most important tools for the government of the Republic of Congo to revive the economy after the crisis of 2012, when the banking system was faced with serious liquidity problems.During the 2nd phase of the program, in addition to SMEs, mid-size companies will also be eligible to benefit from the CYPEF products, while the maximum loan limit per file increases from 1.5 million euros to 12.5 million euros per company. The mandate agreement for the management of CYPEF by the European Investment Fund was also signed today by Mr Alain Godard, Managing Director of the European Investment Fund, “added Minister Petrides.
Largest ever EIB support for transport investments in Cyprus will speed up deployment of road safety radars at crash black spots across the country and improvement of secondary roads in Nicosia, Limassol, Paphos and Vasilikos .
The EIB and the EIF have also agreed on new financing available for most sectors of the Cypriot economy, including the tourism, agriculture, manufacturing and service companies most affected by the economic challenges. , commercial and health related to COVID-19 which will be managed by Cypriot banks and launched. in the next weeks.
âThe European Investment Bank Group is committed to supporting priority investments in Cyprus and supporting Cypriot businesses facing unprecedented challenges due to COVID-19. The 362 million euros, in the new operations signed or approved, target support for road safety and economic resilience in Cyprus. save lives and protect jobs. This week’s visit will allow discussions with Minister Petrides, Minister Karousos and other Cypriot partners on enhancing the impact of EIB and EIF engagement in Cyprus. “Said Werner Hoyer, President of the European Investment Bank.
Deployment of road safety cameras and modernization of roads across Cyprus
The European Investment Bank today officially agreed to provide â¬ 112 million for the installation of speed cameras, improving road safety and reducing congestion on four sections of the Cypriot road network.
“The agreement signed today is the largest ever EIB support for transport investments in Cyprus and will unlock new investments of EUR 276 million, including key land transport infrastructure projects developed by the Ministry of Transport, Communications and Works. the use of speed cameras, reduce transport bottlenecks on key roads, improve connectivity of isolated areas, strengthen the safety of the Cypriot road network and reduce the number of road fatalities in our country â, said Yiannis Karousos, Minister of Transport, Communications and Works.
EIB support will help widen and improve 30 km of key roads across Cyprus, including Nicosia, Limassol, Paphos and Vasilikos.
Supporting Cypriot businesses affected by COVID
Details of a total of â¬ 250 million in new funding for Cypriot entrepreneurs and businesses affected by the pandemic have also been unveiled.
This includes â¬ 200 million of targeted business finance under the Cyprus Entrepreneurship Program II designed to address the specific challenges facing SMEs and mid-cap companies in Cyprus. The new financing will be managed by local banks and unveiled in the coming weeks.
FEI Managing Director Alain Godard also confirmed earlier this week the approval of â¬ 50 million in funding for new businesses in Cyprus, which will be provided through local partner Hellenic Bank, in as part of the first EGF operation in the country to be supported by the European Guarantee Fund.
âThe European Investment Fund is stepping up its engagement across Europe to support the companies most affected by the pandemic. We are very happy to announce this new engagement in Cyprus. This is the first operation of the European Guarantee Fund in Cyprus, which means that â¬ 50 million of business finance will be made available to local businesses so that they can overcome challenges, grow and develop. create new jobs, âsaid Alain Godard, Managing Director of the European Investment Fund.
âWe are honored that Hellenic Bank is the first bank in Cyprus approved to participate in the European Guarantee Fund. Hellenic Bank plans to further support the market, providing liquidity to the economy, with favorable interest rates and improved financial conditions. These financial instruments are fundamental to accelerate a sustainable recovery of healthy companies in sectors such as renewable energies, health, hospitality and education, allowing them to continue to support employment and strengthen innovation â Hellenic Bank CEO Phivos Stasopoulos said.
The â¬ 25 billion European Guarantee Fund was created by the European Investment Bank Group and EU member states in the weeks after the start of the pandemic to protect hard-hit European businesses by the COVID-19 crisis but deemed viable in the long term. Classes.
By helping to cover losses and free up capital for financial intermediaries, GEF guarantees enable financial intermediaries to lend more money to businesses on better terms, helping businesses access fast and advantageous financing and overcome the economic fallout from the COVID-19 pandemic.
Balance sheet of the EIB Group in Cyprus
The European Investment Bank is the largest international public bank in the world and is directly owned by the 27 EU Member States.
Last year the EIB provided EUR 245 million for new investments in Cyprus and since the financial crisis of 2013 the EIB has provided almost EUR 2 billion for public and private investments in the country.