Investment by companies in Cyprus will be strengthened following a new EUR 30 million financing initiative backed by RCB Bank and the EIB. The scheme is part of a broader SME investment program backed by the EIB in partnership with leading banks active in Cyprus.
A new EUR 30 million tranche has been signed between EIB and RCB Bank under the “Cyprus Banks Loans for SME and Mid-caps V” Program. Following this development, Cypriot companies will benefit from longer term loans and favorable rates.
The new facility follows the successful allocation of EUR 60m under the “Cyprus Banks Loans for SMEs and Mid-caps V, III and IV” Program by RCB Bank.
Welcoming the development, the Chairman of the Board of Directors of RCB Bank Ltd Mr Panayiotis Loizides noted that RCB remains committed to further extension of financing to Cypriot businesses. “We are pleased to extent our cooperation with the EIB, which allows us to provide attractive financing to Cypriot SMEs and Mid-caps, which facilitates their investment plans and growth. RCB Bank has substantially increased lending to Cypriot businesses and remains fully committed to further deepening its contributing role in the Cyprus economy”.
“The European Investment Bank is committed to supporting small business investment across Europe. New investment by Cypriot companies is crucial to harness new business opportunities, create jobs and enable firms to build on proven success. This new financing partnership with RCB Bank builds on the EIB’s successful cooperation with local banks to unlock SME investment in Cyprus in recent years,” said Jonathan Taylor, European Investment Bank Vice President.
The initiative is part of a EUR 1 billion program by the EIB, which provides low cost funding to Cyprus banks – on the back of a Government of Cyprus guarantee – which in turn pass on this financial benefit to eligible local SMEs and Mid-caps. So far EUR 750 million has been signed with financial intermediaries.
RCB Bank will combine this funding with own funds in order to further support local companies and ultimately the Cypriot economy. Eligible beneficiaries will enjoy lower lending rates and longer term loans, which will facilitate investment, create new jobs and increase efficiency and competitiveness.