Cyprus has secured its first InvestEU Guarantee agreement, with the European Investment Fund (EIF) and Eurobank signing a deal to unlock €62.5 million in fresh financing for SMEs and start-ups. The facility is designed to ease access to credit by reducing collateral requirements, extending repayment periods, and widening eligibility for younger, higher-growth firms.
Positioned within the EU’s flagship InvestEU programme, the agreement aligns with Cyprus’ push to channel more capital into productive investment. Kyriakos Kakouris, Vice-President of the European Investment Bank (EIB), called the transaction a step toward “simpler, fairer and more inclusive” financing that helps entrepreneurs invest, expand, and create jobs, strengthening both the local economy and Europe’s competitiveness. Marjut Falkstedt, EIF Chief Executive, said the programme equips Europe to improve conditions for businesses, “especially start-ups”, and generate a wider economic ripple effect.
On the banking side, Andreas Petsas, Deputy CEO of Eurobank, framed SMEs as “the backbone of our economy,” adding that the guarantee will support job creation, innovation, and resilience by de-risking new lending.
The deal builds on a long relationship: the EIB Group (including the EIF) has invested over €5.5 billion in Cyprus since 1981, backing priorities from energy security and affordable housing to SME finance, innovation, water infrastructure, and climate resilience. Beyond immediate liquidity, the InvestEU guarantee is expected to catalyse further collaboration, signalling sustained EU support for growth and innovation in Cyprus.
CNA sourced reporting
