< i style = 'color: black' class = 'fa fa-user' aria-hidden = 'true'> & nbsp & nbspInsider/ΓΤΠ & nbsp; & nbsp;
To support the economy due to the COVID-19 pandemic, the Government approved in 2020 a series of fiscal measures, three of which had the support of the EIB, said the Minister of Finance Konstantinos Petridis. & Nbsp;
< Specifically, the European Investment Bank (EIB) is supporting an investment of 303 million euros for financial resilience due to the pandemic, road safety and financial technology in Cyprus for 2021.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Participation in the Pan-European Guarantee Fund (EGF). Cyprus was the first EIB shareholder to participate.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Increase of government guarantees to the EIB by € 500m for the granting of loans by banks to small and medium-sized enterprises and medium-sized enterprises, on favorable terms (from € 1 billion to € 1.5 billion).
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Request of the CoR for the promotion of the actions for the implementation of the “Cyprus Entrepreneurship Fund (CYPEF) II” (signed on 16/3/2021)
COOPERATION BETWEEN THE REPUBLIC OF CYPRUS AND THE EUROPEAN BANK /p>
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; In 2021, the EIB provided a total of new funding of € 303m. for new investments:
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; € 100m under CYPEF II, a risk-sharing tool designed to support local SMEs and SMEs during these difficult times. The request was submitted by the Ministry of Finance, given the successful implementation of & nbsp; CYPEF I and accepted by the EIB.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; € 112m, to support key government infrastructure projects in & nbsp; transport sector. This amount was increased to include the investment in the installation of road safety cameras.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; In June 2021, a debt financing of € 15m was signed. with Hellas Direct, a private technology company providing e-insurance services in Greece and Cyprus.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; € 6cm Alpha Bank to support small and medium-sized investments in renewable energy (“RE”) and energy efficiency (“EU”), as well as small and medium-sized enterprises (“SMEs”) leading to CO2 reduction under the Cyprus RE and EE Small Investments Finance Contract.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; € 70cm under the European Guarantee Fund (EGF and EIF support): The EIF signed 2 major guarantee agreements under the EGF mandate: € 50m. with Hellenic Bank and € 20m. with Eurobank.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; The EIB's substantial exposure to the Cypriot economy places Cyprus at the top of all EU countries in which the EIB operates as a percentage of GDP.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Since the start of EIB operations in Cyprus in 1981, the EIB has signed loans totaling € 5 billion, of which $ 2.2 billion after 2013, showing its strong support for the Cypriot economy.
FUTURE EIB ACTIONS IN CYPRUS
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Expected Signatures 2022
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Additional € 100cm. for Private Investments (SMEs and MidCaps) under the Cyprus Entrepreneurship Fund II (CYPEF II)
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Urban infrastructure projects planned by the Municipalities up to € 150m.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Private Investments in Renewable Energy projects: up to € 100m.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Cyprus Equity Fund
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Access to finance in Cyprus also emerges through the limited activity of venture capital. In order to improve the financing of companies, especially innovative ones, & nbsp; The Republic of Cyprus is in advanced negotiations with the EIF for the signing of an agreement for the management of the first Equity Fund in the country supported by public resources. The main goal of the Cyprus Capital Financing Fund will be to enhance access to alternative sources of funding for start-ups and innovative companies.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; KD's contribution amounts to & nbsp; € 30m and will be co-financed by RRF resources (up to € 20 million) and the JEREMIE Cyprus program (up to € 10 million).
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Other Projects
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; National Museum
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Projects for the promotion of Affordable Housing and the Construction of Student Dormitories aiming at dealing with the increase of rents. Ongoing actions by the University of Cyprus, TEPAK as well as by the Ministry of Foreign Affairs.
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; State Chemistry Support for Innovation and Research actions
& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Ongoing market monitoring for commercial loans/direct lending projects.
