The European Investment Bank (EIB) will finance Cyprus with up to 300 million euro for infrastructure projects, the use of renewable sources and for supporting small and medium-sized enterprises, through Cypriot commercial banks, thus boosting the island’s economy and social coherence.
This was stated Thursday by EIB Vice-chairman Ploutarhos Sakelaris after a meeting he held in Nicosia with Finance Minister Charilaos Stavrakis.
In statements to the press after the meeting, Sakelaris expressed the EIB’s confidence in the Cypriot economy and the measures taken by the government, adding that the economy of Cyprus ''will continue to develop” despite the world economic crisis.
He said that in 2009, Cyprus would receive double financing compared to the amount it received in the past ten years.
''Our cooperation with the Cypriot authorities is very good, but through effort we could increase our activities in Cyprus and double it this year and next year. With effort and the proper development projects the financing for Cyprus could reach 200 to 300 million euro”, he said.
During the meeting, the Cypriot Minister and the EIB delegation, headed by Sakelaris, discussed ways of cooperation to the benefit of the Cypriot economy.
According to EIB data, during the last 12 years, Cyprus received EIB financing reaching 1.5 billion euro, half of which was granted after Cyprus’ EU accession in 2004.
Sakelaris expressed the view that during the first semester of 2009 contracts would be signed with the Cypriot commercial banks for granting loans to the Cypriot small and medium sized enterprises.
In his statements, the Cypriot Minister of Finance said that the main areas of cooperation with the EIB are “the financing of great government projects, projects of the local authorities, the semi-governmental organizations, under attractive conditions”.
He expressed the view that “the most important is the financing of small and medium –sized enterprises with competitive interest rates through the Cypriot banks”.
The Minister said that Friday a meeting would be held with representatives of the Cypriot banks to discuss in detail “how this liquidity could be granted” and expressed the conviction that very soon there would be positive results.
''This possible cooperation is in line with our development policy, the great public projects, the support towards the small and medium-sized enterprises and the enhancement of the liquidity in the market”, he said, adding, “this contributes to our ambitious goals to achieve an even higher growth rate”
Source: Financial Mirror
Dominic Farrell
