EIB Group Expands Strategic Investments in Cyprus with Major Funding for Education Infrastructure and Sustainable Development Projects

EIB Group Expands Strategic Investments in Cyprus with Major Funding for Education Infrastructure and Sustainable Development Projects

(IN BRIEF) The European Investment Bank Group achieved a record level of financing activity in Cyprus in 2025, providing €372 million to support a wide range of sectors including education, infrastructure, healthcare, cultural heritage, and SMEs. A major component of the funding includes a €125 million loan to modernise public schools, delivering over 140,000 square metres of upgraded and energy-efficient learning spaces. Additional investments supported transport infrastructure, cultural projects such as the Cyprus Archaeological Museum, and innovation programmes like THALIA 2021–2027. The EIF also contributed to SME financing through a new InvestEU guarantee expected to mobilise significant lending. Overall, the investments strengthened economic resilience, promoted sustainable growth, and reinforced Cyprus’s long-term development, with total EIB Group support over the past five years exceeding €1.5 billion.

(PRESS RELEASE) LUXEMBOURG, 18-Mar-2026 — /EuropaWire/ — European Investment Bank and its subsidiary European Investment Fund reached a record level of activity in Cyprus in 2025, delivering a combined €372 million in financing. This milestone reflects a significant contribution to the country’s economic development, representing 1.02% of Cyprus’s GDP and translating into an estimated per capita investment of €839.

Of the total financing, €354 million was provided through EIB loans, while €18 million was mobilised by the EIF. The funding supported a broad range of sectors including education, healthcare, infrastructure, cultural heritage, and small and medium-sized enterprises, with a strong emphasis on strengthening innovation, skills, and regional cohesion. Climate-focused investments accounted for €226 million, while €149 million was directed toward cohesion and regional development initiatives. Over the past five years, total EIB Group financing in Cyprus has exceeded €1.5 billion, underscoring a sustained commitment to long-term growth.

A key highlight of the year was the signing of a €125 million loan to modernise public school infrastructure across Cyprus. The programme includes the construction of new schools, expansion of existing facilities, and extensive renovation projects, collectively delivering more than 140,000 square metres of upgraded learning environments. The initiative incorporates energy-efficient and sustainable building standards, contributing to improved educational conditions while aligning with EU climate objectives.

EIB Vice-President Morak Mora described 2025 as a landmark year for the Bank’s engagement in Cyprus, noting that the record level of financing demonstrates a clear commitment to inclusive and sustainable growth. The investments are expected to enhance education systems, support innovation, advance the green transition, and promote regional cohesion, delivering tangible benefits across Cypriot society.

In the transport sector, the EIB provided an additional €100 million tranche to support the development of Cyprus’s national road network. The investment focuses on improving safety, accessibility, and connectivity, covering highways, regional and rural roads, and infrastructure such as bridges, tunnels, and pedestrian and cycling facilities, alongside modern traffic management systems.

Cultural infrastructure was also strengthened through a €72 million investment in the development of the new Cyprus Archaeological Museum, a flagship project aimed at enhancing the country’s cultural offering and visitor experience.

To support sustainable growth, the EIB allocated €50 million toward Cyprus’s participation in the THALIA 2021–2027 Operational Programme, which promotes smart, green, and inclusive development through EU co-financed initiatives.

In the healthcare and research sector, the EIB increased its support for the Cyprus Institute of Neurology and Genetics with an additional €5 million, bringing total financing to €31 million. This funding supports new facilities, advanced medical equipment, research and development, and postgraduate education, strengthening the institute’s role in healthcare services and scientific excellence.

Meanwhile, the EIF contributed to improving access to finance for smaller businesses by launching its first €5 million InvestEU guarantee agreement with Eurobank Ltd. This initiative is expected to mobilise up to €62.5 million in loans for SMEs and start-ups, supporting entrepreneurship, innovation, and job creation.

Overall, the investments made in 2025 have reinforced Cyprus’s human capital, infrastructure, and innovation capacity, helping to build a more resilient, sustainable, and competitive economy.

Background information  

The EIB Group 

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.

The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium size businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.

In 2023, the EIF together with six member states (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund of funds to scale-up innovative startups. This initiative has already enabled the creation of  13 European venture capital mega-funds and scaled up 38 companies, including 11 unicorns (with more than €1 billion in capital).

Media contacts:

Elizabeth Zitouniati
e.zitouniati@ext.eib.org
+352 4379 – 71692

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank