European Investment Bank Development Loans & Tourism Sector Loans

Bank of Cyprus, fully appreciating its major role in the recovery of the Cypriot economy, is renewing its partnership with the European Investment Bank (EIB), introducing a new financing scheme aimed at supporting Cypriot Businesses and youth employment, with emphasis on the tourism and trade sectors.  The total additional amount beyond the current €150ml, to be allocated on favourable terms to the Cypriot businesses will amount to €35ml, bringing the new total for all purposes to €250.  Interested customers can submit their application directly to our bank.

Scheme beneficiaries:

Cypriot businesses incorporated and operating in Cyprus and employing up to 3000 employees. The limit of 3000 employees concerns business operations on the conglomerate, or group of companies, level.

Excluded sectors and activities

Final Beneficiaries active in any sector are eligible except the following activities:

  • 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 centres 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 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;
  • The purchase of goodwill; the purchase of intangible assets[1] 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 real estate development activity;
  • Activities constituting pure financial transactions (such as the purchase of shares, or any other financial product).
  • Also excluded are financial holding companies and leasing companies.
  • 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;

Loan amount:

From €1.5ml up to €12.5m in each case.

Currency: Euro

Duration: From 2 to 15 years

Financing objectives:

The overriding objective is to finance investments and expenditures aimed at the development of tourism and other developing and growing businesses through various projects, specifically:

  • The purchase, renovation or extension of tangible assets other than land[2];
  • Investment in intangible assets, i.e.:
    • Development, planning and financing costs during the construction phase of a tangible asset;
    • R&D expenses (fees, development costs and gross salaries directly associated with the research, development, and innovation components of the activity);
    • Building up of distribution networks in domestic or other markets inside the EU (asset and/or trademark acquisition, operational costs and labour costs).
    • Medium and long term working capital needs
    • Refinancing of existing loans, under conditions
    • VAT or other obligations to the State are not financed

Financing terms:

  • Low interest, choice of fixed or floating rate[i]
    • Fixed rate from 4.00% to 4.95%
    • Floating rate from Εuribor 6m + 3.10% to Euribor 6m + 4.10%
    • Long repayment period
    • Grace period for repayment of principal
    • More favourable interest rate to businesses that meet the “Job for Youth” criteria[ii]


Tangible collateral required as bank policy


The Bank reserves the right to reject a financing application if its terms and conditions are not met and/or modify any of the above conditions.

The amount in state aid benefiting the company from the aforementioned low-interest loan must fall within the permissible limits as set out by the Office of the Commissioner for State Aid Control.  Furthermore, companies that received other state or national aid for the same project, cannot finance the same project with these loans.

For more information, please visit our Βusiness Centres & Corporate Centres.

[1] Examples of such intangible assets include production or distribution rights, such as for media and services, taxi licences, production licences in the pharmaceutical industry, etc.

[2] The financing of land purchase is excluded unless it is technically essential for the investments. Financing of purchase of farmland is entirely excluded.

[i] Depending on market conditions, interest on new loans shall be subject to revision

[ii] In order for a business to be eligible for this programme, it must meet at least one of the following criteria:

  • The Final Beneficiary confirms that over the last six months he has hired, and continues to employ, at least one young person, aged 15 to 27 (five persons for Mid-Caps) or that he intends to hire at least one young person (at least five persons for Mid-Caps) over the six months following the date on which the loan is granted
  • The Final Beneficiary offers young persons, on-the-job training, or work-experience placements/internships/training programmes designed for youths
  • The Final Beneficiary has an ongoing partnership agreement with a technical college or school or university for employing young persons


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