European Investment Bank (EIB) 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). The financing scheme aims at supporting Cypriot Businesses and youth employment. The total amount to be allocated on favourable terms to Cypriot businesses will amount to €100m.  Interested customers can submit their application directly to our bank.

Scheme beneficiaries:

Cypriot businesses incorporated and operating in Cyprus, employing less than 3000 employees at group level.

Financing objectives:

To finance investments and working capital to grow businesses as follows:

  • The purchase, renovation or extension of tangible assets other than land (except in cases where this is deemed absolutely necessary for the completion of the investment, e.g. purchasing land for the purpose of building offices).
  • Medium-term/long-term working capital needs;
  • Investment in intangible assets:
  • 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).
  • VAT or other obligations to the State are not financed


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 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;
  • 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 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.

Loan amount:

€150.000 - €5m

Currency: Euro

Duration:  2 - 12 years

Financing terms:

  • Preferential interest [1]
  • Long repayment period
  • Grace period of up to 2 years for repayment of principal
  • More favourable interest rate - 0.5% lower - to businesses that meet the “Job for Youth” criteria [2]
  • Pricing set according to the customer’s risk.


Minimun collateral amount 30% on the loan requested

How to submit an application

  • Visit your Responsible Banker
  • New customers may submit their application at any branch
  • Having submitted your application, you will wait for the Bank’s response and, provided you are approved for financing, you will visit the branch anew to sign the contracts.


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 SME Banking Centres (Business Centres) & Corporate Banking Centres.

[1] Interest rates will be revised for new loans depending on market conditions.

[2] 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 in the last 6 months it has employed at least one young person (5 for MidCaps) aged 15 to 27, or in the coming 6 months it plans to employ at least one young person (5 for MidCaps), calculated from the signature date of the loan; it commits to keep the young people in employment for at least 1 year, and/or
  • In the last 6 months it has provided a vocational training or internship position to at least 1 young person (5 for MidCaps), or in the coming 6 months it plans to provide a vocational training or internship position to at least 1 young person (5 for MidCaps), calculated from the signature date of the loan agreement. The training/internship has a duration of at least three months and is formalised by an active cooperation agreement with a technical school, university or public employment agency and/or is confirmed by a letter signed by one of these institutions and/or is part of the Final Beneficiary’s own formalised vocational training or internship programme.
  • In the last 6 months it has participated in a youth entrepreneurship programme of a Non-Governmental Organisation or educational institution, or plans to participate in such programme in the coming 6 months.

For the Final Beneficiaries complying with one of the above criteria, Bank of Cyprus will ask the Final Beneficiary to sign the "Jobs for Youth Eligibility Confirmation"                         


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