cyprus smes — cyprus smes — The European Investment Fund (EIF) and Eurobank (Cyprus) have announced a significant boost for small and medium-sized enterprises (SMEs) and start-ups in Cyprus, launching the first InvestEU Guarantee transaction in the region, which will unlock €62.5 million in new financing.
Photo: cyprus-mail.com
- The launch of the InvestEU Guarantee transaction marks a pivotal moment for SMEs and start-ups in Cyprus as the financial landscape becomes more accessible and supportive of entrepreneurial ventures.
The agreement, signed on Tuesday, aims to provide a portfolio guarantee that will facilitate access to loans for Cypriot businesses. This initiative particularly focuses on supporting start-ups that have historically faced challenges in obtaining bank credit.
Photo: cyprus-mail.com
Kyriakos Kakouris, Vice-President of the European Investment Bank, commented on the agreement’s potential, stating, “This first EIF InvestEU agreement in Cyprus opens new doors for entrepreneurs.” He emphasised that the initiative would make financing simpler, fairer, and more inclusive, allowing SMEs and start-ups across Cyprus to invest, expand, and ultimately create jobs.
The new financing scheme is designed to alleviate some of the burdens that SMEs face. It will reduce collateral requirements, making it easier for viable businesses that might lack sufficient guarantees to secure funding. Additionally, the programme will offer longer repayment periods, providing companies with the flexibility they need to grow.
Marjut Falkstedt, Chief Executive of the EIF, expressed her enthusiasm for the programme, stating, “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.” She highlighted that the agreement would lead to better financing conditions for Cypriot businesses, particularly start-ups, with far-reaching effects on the economy.
Andreas Petsas, Deputy CEO of Eurobank, reiterated the importance of supporting SMEs, recognising them as the backbone of the economy. “Supporting their growth means supporting jobs, innovation, and the overall resilience of Cyprus economy,” he noted. Petsas added that the partnership would direct funds towards critical sectors, including energy, health, tourism, and transport.
InvestEU is a strategic programme that mobilises public and private funds to support EU policy priorities through long-term financing. By integrating multiple EU financial instruments into a single framework, the programme aims to simplify and streamline financing while promoting sustainability, innovation, and social inclusion.
The EIF, as part of the European Investment Bank Group, is dedicated to enhancing access to finance for Europe’s micro, small, and medium-sized enterprises. With a mission to support innovation, research and development, entrepreneurship, growth, and employment, the EIF plays a crucial role in bolstering the EU’s economic landscape.
Since its establishment in 1981, the EIB Group has invested over €5.5 billion in Cyprus, focusing on sustainable growth across various sectors. In 2024 alone, the EIB Group financed nearly €89 billion for over 900 high-impact projects, reinforcing Europe’s competitiveness and security. Of its investments within the EU, around half target regions with below-average per-capita incomes, and nearly 60% of annual investments support climate action and sustainability initiatives.
The launch of the InvestEU Guarantee transaction marks a pivotal moment for SMEs and start-ups in Cyprus as the financial landscape becomes more accessible and supportive of entrepreneurial ventures.
