Government secures a €369-million loan by EIB to finance investment projects

Cyprus secured a €369 million loan by the European Investment Bank (EIB) covering part of the expenditure and investment in the context of the cohesion policy programme “Thalia” 2021-2027, Minister of Finance Makis Keravnos has said.

“At this difficult economic juncture both on a global and European level the government with decisions and actions is trying to keep the economy robust and competitive,” Keravnos said in statements after a Cabinet meeting, chaired by the Acting President of the Republic, House President Annita Demetriou.

He noted that the government is implementing the Cohesion Policy Programme “Thalia” for the period of 2021 – 2027 with a total budget of €1.8 billion “leading the economy to smart, digital and green investments, full employment and social cohesion, reflecting the growth priorities of the Cypriot economy and the government.”

Under the programme, Cyprus will receive from the EU Cohesion Policy Funds €968 million with Cyprus’ own contribution amounting to €842 million, he added, noting that in this context Cyprus has secured a loan of €369 million by the EIB to finance selected programmes and priorities for the period of 2021 – 2027.

“The said financing will positively contribute to the start of the implementation of various investment programmes enabling Cyprus to tackle a series of financial and climate challenges,” Keravnos said.

He also added that EIB funding provides significant benefits to Cyprus as the loan terms are better than any other financing source both abroad and domestic, providing for a grace period of seven years and a 25-year repayment period.

Asked whether the government is considering to take new measures to ease the hardship for consumers due to rising prices, Keravnos reiterated that the government favours targeted measures as urged by the European Commission and the IMF.

He also recalled that the government has launched a horizontal measure by lowering VAT to zero for basic goods.

Therefore, the government is open, flexible and ready to provide measures which respond to real needs at the given juncture, he said.