For most of the instruments deployed with the support of national or EU funds, in order to become available there is a need first for national financial intermediaries, like banks, other financial institutions, holding funds etc., depending on the type of the instrument (e.g. loan, guarantee, equity) to participate in the corresponding programme. Therefore, when there is a policy decision for such an instrument to be developed, what follows is a call by the Competent Authority, at national or EU level, addressed to financial institutions which are interested to participate, usually by adding own resources and sharing risk. As already described, the ability to leverage additional private funds is one of the advantages of financial instruments.

Presented below are financial instruments which have been adopted and are available by financial intermediaries operating in Cyprus.

It is noted that the financial instruments presented in this Portal relate to mechanisms directly or indirectly supported by national or EU funds. Other funding tools provided by the banks or other financial institutions, supported only by own or other resources, are not included herewith.  

With the aim to enhance the competitiveness of the Cypriot enterprises, as well as to support sustainable growth and youth employment, a number of Cypriot banks have entered into loan agreements with EIB, supported by the Government of the Republic of Cyprus with state guarantees, with the view to adopt and make available to the Cypriot SMEs this EIB financing scheme.

Through the scheme, the banks provide loans with favourable terms to eligible Cypriot SMEs and Mid-Caps. An even more favourable interest rate is provided to companies that meet the criteria for the “Jobs for Youth” Programme of EIB.

• Bank of Cyprus: from €150.000 up to €5 mln
• USB: up to €12.5 mln
• National Bank of Greece (Cyprus): up to €12.5 mln
• Hellenic Bank: up to €12.5 mln

For further information on thematic concentration that may apply (i.e. emphasis on certain sectors) you may directly contact the banks participating in the Scheme.

• Other Services
• Processing
• Research, Technological Development and Innovation
• Small-Medium Enterprises and Competitiveness
• Tourism
• Trade and Commerce

• Large Enterprises
• Small and Medium Enterprises (SMEs)

• Activities targeting the production of weapons and ammunition, arms, military or police equipment or infrastructures, and equipment or infrastructure which result in limiting people’s individual rights and freedom (i.e. prisons, detention centers of any form) or in violation of human rights;
• Activities targeting the production or facilitating the use of gambling and related equipment;
• Activities targeting tobacco manufacturing, processing, or specialist tobacco distribution, and activities facilitating the use of tobacco (e.g. “smoking halls”);
• Activities involving live animals for experimental and scientific purposes insofar as compliance with the “Council of Europe’s Convention for the Protection of Vertebrate Animals used for Experimental and other Scientific Purposes” cannot be guaranteed;
• Activities which give rise to environmental impacts that are not largely mitigated and/or compensated;
• Activities considered ethically or morally controversial or which are forbidden by national law, e.g. research on human cloning;
• Activities constituting pure real estate development activity;
• The purchase of goodwill; the purchase of intangible assets that could lead to or enforce a strong market position of the Final Beneficiary (i.e. a market share of more than 20% of the relevant market); the purchase of licenses or rights for mineral resource exploitation;
• Activities constituting pure financial transactions (such as the purchase of shares, or any other financial product).
• Financial holding companies and leasing companies are also excluded.

Interested companies may contact customer service officers within the banks’ local centers / braches or directly communicate with the contact points below. More information is also available in the banks’ websites below.

http://www.eib.org/products/lending/intermediated/index.htm