First InvestEU Guarantee in Cyprus unlocks €62.5 million in new financing for SMEs and start-ups through EIF and Eurobank

First InvestEU Guarantee in Cyprus unlocks €62.5 million in new financing for SMEs and start-ups through EIF and Eurobank

(IN BRIEF) The European Investment Bank Group has signed the first InvestEU Guarantee agreement in Cyprus through the European Investment Fund (EIF) and Eurobank, creating up to €62.5 million in new loans for SMEs and start-ups. Backed by EU support, the financing will reduce collateral requirements, provide longer maturities, and extend access to start-ups that often struggle to secure credit. EIB Vice-President Kyriakos Kakouris and EIF Chief Executive Marjut Falkstedt stressed that the transaction will boost entrepreneurship, innovation, and job creation, strengthening both the Cypriot economy and Europe’s competitiveness.

(PRESS RELEASE) LUXEMBOURG, 24-Sep-2025 — /EuropaWire/ — The European Investment Bank Group has launched the first InvestEU Guarantee transaction in Cyprus, unlocking new financing opportunities for small and medium-sized enterprises (SMEs) and start-ups.

The agreement, signed between the European Investment Fund (EIF) and Eurobank, introduces a loan portfolio guarantee that will support up to €62.5 million in new financing for Cypriot companies. This landmark operation extends EU-backed support to businesses that often face barriers to credit, offering them improved financing terms tailored to their growth needs.

Through this guarantee, Cypriot entrepreneurs will benefit from reduced collateral requirements, longer repayment periods, and dedicated support for start-ups, enabling them to secure financing traditionally out of reach. These features are expected to stimulate investment, encourage innovation, and drive job creation in a market where smaller businesses form the backbone of the economy.

EIB Vice-President Kyriakos Kakouris highlighted the significance of the transaction: “With this first EIF InvestEU agreement in Cyprus, we are opening new doors for entrepreneurs. Europe is here to make financing simpler, fairer and more inclusive. SMEs and start-ups across Cyprus will now be better equipped to invest, expand and create jobs, strengthening the local economy and Europe’s competitiveness.”

EIF Chief Executive Marjut Falkstedt added: “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. Ultimately, this will mean better financing conditions for Cypriot businesses, and in particular start-ups, with all the knock-on effect that can have on the economy.”

The transaction underscores the EU’s commitment to empowering entrepreneurs in Cyprus and ensuring that the InvestEU programme delivers tangible benefits at local level. By widening access to finance, the EIB Group is fostering innovation, competitiveness, and resilience in the Cypriot economy.

EIF

The European Investment Fund (EIF) (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, a stronger Europe in a more peaceful and prosperous world and Europe’s capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

Approximately half of the EIB’s financing within the EU targets cohesion regions, where per-capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.

Since the first operation in 1981, the EIB Group has invested over €5.5 billion in Cyprus and remains a key partner in the country’s sustainable growth – further underlined by strengthening its local presence and leadership. The bank’s priority sectors in Cyprus are energy security, affordable housing, SMEs and innovation, water and climate resilience.

Press contacts

Elizabeth Zitouniati, e.zitouniati@ext.eib.org, Τel: +306981786660

Nikos Chrysoloras, n.chrysoloras@eib.org, Tel: + 32 473 13 47 60

Website: www.eib.org/press – Press Office: +352 4379 21000 – press@eib.org

SOURCE: European Investment Fund