Limassol: Cyprus has for decades benefited from a strong and long-lasting partnership with the EIB Group, said Minister of Finance, Makis Keravnos, speaking to the members of the Boards of the European Investment Bank and the European Investment Fund at a dinner in Limassol. Keravnos noted that the EIB has invested more than £5.7 billion in the country, making Cyprus the largest per capita beneficiary of EIB support among EU member states.
According to Cyprus News Agency, Keravnos highlighted the EIB’s role as a trusted partner for Cyprus, transforming European priorities into tangible investments for over four decades. He emphasized Cyprus’ upcoming Presidency of the Council of the European Union in the first half of 2026, viewing it as a responsibility to actively shape the Union’s future. The Minister assured that Cyprus remains committed to building on the agenda of previous presidencies, with priorities aligned to the Union’s strategic objectives, such as strengthening Europe’s competitiveness and advancing the Capital Markets Union and the Savings and Investments Union.
Keravnos also addressed ongoing work on revising the EU securitization framework, which could channel more investments into the real economy. He emphasized the need to simplify due diligence requirements while safeguarding financial stability. Furthermore, Cyprus’ Presidency aims to contribute to an agreement on the post-2027 Multiannual Financial Framework, focusing on Europe’s defense, security, and strategic partnerships.
The Minister noted the convergence of challenges facing the EU, including geopolitical tensions and economic uncertainty, alongside opportunities for a green and digital transition. He praised the EIB Group’s financial strength and strategic focus, particularly for smaller economies like Cyprus.
Keravnos briefed on the Cypriot economy’s performance, citing strong resilience and adaptability over the past two years. He mentioned achieving one of the highest growth rates in the Eurozone, a robust fiscal surplus, and significant debt reduction. The Dept-to-GDP ratio is expected to fall to 57% by the end of this year, with unemployment at 4.3% and inflation close to zero for 2025.
The EIB has supported Cypriot SMEs and mid-caps through initiatives like the Cyprus Entrepreneurship Fund, mobilizing up to £540 million for innovation and entrepreneurship. The Cyprus Equity Fund, a £30 million fund-of-funds, provides early-stage venture capital to startups. The EIB has also contributed to improving project design with technical assistance exceeding £2.2 million over the past decade.
As Europe’s climate bank, the EIB invests in renewable energy, water management, and digitalization. It supports transformative technologies and contributes to Europe’s security and modern social infrastructure. Keravnos expressed belief in the continued flourishing partnership between Cyprus and the EIB Group.
The Minister acknowledged Kyriakos Kakouris, whose mandate as VP of the EIB is completed, for his role in deepening the Cyprus-EIB partnership. He credited Kakouris with advancing significant projects and strengthening trust and confidence, benefiting both Cyprus and the broader European project.