Cyprus remains the largest beneficiary of EIB support per capita of any country in Europe, European Investment Bank President Werner Hoyer said on Friday, following his meeting with Finance Minister Makis Keravnos. He added that last year the EIB Group allocated a total of €250 million for priority investments in Cyprus.

In his remarks after the meeting, the Finance Minister thanked the EIB President for his visit to Cyprus for the first time since the election of Nikos Christodoulides to the Presidency of the Republic, adding that it is an indication of the European Investment Bank's commitment to Cyprus and its people.

He also referred to a constructive meeting, during which Cyprus' cooperation with the bank so far was discussed and the extension of this cooperation in the near future was considered.

He added that he is particularly pleased that the main development projects in Cyprus, such as the university campus, roads and development projects of the Electricity Authority and municipalities, are either funded or are about to be approved for funding, such as the Museum, sewerage projects, CUT student residences and the University of Cyprus, and even the new State Laboratory building.

"The green transition is a top priority for the Republic of Cyprus and accelerating this path is essential for the economy," said Keravnos, adding that in this effort President Hoyer assured him that the European Investment Bank, which is also called the “climate bank of Europe”, will stand by Cyprus not only by providing loans, but also by utilizing the expertise and experience of its staff.

He added that for this purpose, a technical mission to Cyprus is planned shortly and will have contacts with the relevant government departments.

For his part, the EIB President said what has been achieved since with the accession of Cyprus and the active participation in the EU and the EU’s bank is “an amazing story”, and thanked the Cypriot authorities for the close cooperation with the EIB Vice-President responsible for Cyprus Lilyana Pavlova, who will be back in Cyprus in two weeks, and for the strong and constructive engagement of Cyprus as an EIB shareholder.

Hoyer then said that he discussed with the Cypriot Finance Minister the bank’s strong engagement in Cyprus, the future support for priority investments in the country and the EIB’s broader response to support countries impacted by the ongoing economic and trade shocks triggered by the war in Ukraine.

According to the EIB President, last year the EIB group allocated for priority investments in Cyprus a total of 250 million euros, adding that Cyprus remains the largest beneficiary of EIB support per capita of any country in Europe and that the EIB’s outstanding exposure to date stands at approximately 10% of the country’s GDP.

He also highlighted the allocation of 150 million euro for urban regeneration projects across Cyprus, making not only the communities greener but also boosting the economy and improving the people’s lives, which was accompanied by an important technical advisory assignment funded by the EIB to facilitate the implementation and help identify future green investments.

He added that this is a big advantage for the country because EIB is a bank that is mainly driven by engineers and scientists, allowing it to offer substantial technical support.

Last year the EIB also provided 100 million euros of targeted business financing support SMEs and MidCaps through the Cyprus Entrepreneurship Fund, continued Hoyer, adding that through the European Investment Fund the EIB supported the Ministry of Finance to establish the Cyprus Equity Fund, the first private equity fund in Cyprus which will enhance access to finance for start-ups and innovative companies, providing a long-lasting impact on the Cypriot economy.

Referring to the war in Ukraine, EIB President thanked the EU member states and EIB shareholders, including the Republic of Cyprus, for their support through which the EIB has been able to approve and disburse 1.7 billion euros of financial assistance to Ukraine, adding that another 500 million euros will be disbursed over the coming weeks and months.

“We need to do more and to be able to do so and help Ukraine we have established the ‘EU for Ukraine’ initiative, under which the EU-Ukraine Trust Fund was created, which we will allow the continuation of EU support to Ukraine”, he added.

According to Hoyer, the EIB is also supporting countries impacted by the war in Ukraine, working with national and local authorities to make financial and technical assistance available to these countries and regions, adding that the bank stands ready to support investments in Cyprus that will help reduce the impact of economic shocks triggered by the war.

He also said that the EU is fully aware of the enormous contribution of Cyprus to solving the humanitarian issues that go along with huge refugee flows, adding that the number of asylum seekers in the country in comparison or in relation to GDP is probably the highest in the EU and a huge burden on the economy, the country and the society and this is highly respected.

“That means for us as a financier that we must focus not only on the security policy dimension and the military support for our friends in Ukraine but we must strengthen also the economic resilience of Ukraine by making sure that the economy can continue to operate. This is where a bank that is particularly active in the field of infrastructure (hospitals, schools, roads etc.) is particularly challenged and we are up to the challenge” concluded the EIB President.