The Cypriot government, the Municipality of Pafos, the Cyprus University of Technology (CUT) and the European Investment Bank (EIB) signed on Friday loan agreements amounting to €125 million, financing the further development of CUT and the construction of university student halls, assisting the efforts to tackle the challenge of obtaining affordable housing.

The first loan agreement amounting to €108 million concerns the implementation of student halls and university buildings in Limassol and the second worth of €17 million concerns the construction of student halls by the Pafos Municipality and sports facilities. The latter was supported by a government guarantee provided to the EIB.

Speaking during the signing ceremony, Finance Minister Makis Keravnos stressed that public benefits from the implementation of these projects are deemed as very important, as they enable university students to obtain affordable housing with the construction of 703 student halls, 500 in Limassol and 203 in Pafos.

Keravnos also highlighted once more “the successful historic cooperation with the EIB”.

“This cooperation historically constituted a basic driver for our economy’s” growth, he stressed, recalling that Cyprus remains the largest recipient of EIB support per capita in Europe.

On his part, Kyriakos Kakouris, the EIB Vice President described the signing of the loan agreements as a landmark as they mark the commencement of the bank's cooperation with Cyprus aiming at improving social infrastructure mainly in the field of affordable housing, recalling that improving social infrastructure is among the priorities of the EIB’s Strategic Road Map.

He also noted that part of the financing is supported by InvestEU, a new innovative financing tool by the EU, operated by the EIB. “This is the first time that investments in Cyprus are financed by InvestEU, rendering today’s financing a significant landmark for the bank’s activities in the country,” he added.

Pafos Mayor, Phedon Phedonos, said that it is the first Municipality to construct and operate student halls, responding to an obvious social need, noting that housing issues are not a Cypriot but a European phenomenon as well. He added that the 203 student halls will be ready in the coming three days, while already 155 contracts will be signed with students Phenodos also said that the Municipality will launch a tender for the construction of sports facilities next week.

CUT rector, Panagiotis Zafiris, said the loan agreements “will enable the university to proceed with its largest expansion since its operation 20 years ago.”

As he noted, the €125 million agreement will finance the construction of buildings for the Chemical Engineering Department, the Department of Multimedia and Graphic Arts and the Department of Fine Arts in Limassol city centre, as well as the construction of student halls in Verengaria in Limassol district.