Bank of Cyprus has signed a new agreement with the European Investment Fund (EIF), enabling Bank of Cyprus to allocate €60m, additionally to the existing €60m, to small & medium-sized businesses (SMEs).

“Cyprus Entrepreneurship Fund – Co-financed Loan” (CYPEF) is being rolled out with the support of the Republic of Cyprus and the European Investment Bank Group.

The scheme involves the co-financing by Bank of Cyprus and the Republic of Cyprus of new loans, of up to €1,500,000 and on favourable terms, to medium, small and very small businesses, the direct goal being to support these businesses to expand, develop and strengthen.

These new loans will be granted on particularly favourable terms, with regard to the repayment period, the grace period, the required collateral, as well as the pricing policy.

Eligibility criteria for the CYPEF co-financing product 


  • Current/new customers.
  • Corporations and self-employed incorporated, registered and operating in Cyprus.
  • SMEs employing up to 250 staff and with a turnover less than €50m or total assets (based on financial statements) less than €43m.

Features of the scheme

  • Maximum financing:      €1.5ml
  • Minimum repayment      period: 24 months
  • Maximum repayment      period: 144 months
  • Grace period for principal: up to 2 years
  • Monthly loan instalments
  • Currency: ΕURO


Loan pricing:

  • From 3m EURIBOR + 2.875% to 3m EURIBOR + 3.375%
  • Physical collateral required, as per the Bank’s policy at any given time
  • Fees and commissions apply, as per the Bank’s price list at any given time


The scheme’s overriding objective is to finance investments, working capital expenditures aimed at developing and growing businesses through various projects, specifically: 

  • The purchase, renewal or expansion of assets for own use, other than land (unless the purchase of land is deemed absolutely essential for completing the investment, e.g. purchase of land for building offices)
  • Medium-term/long-term working capital requirements
  • Investment in intangible assets, i.e.: 

- The cost of development, planning and financing during the construction phase of an 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 within the EU (asset and/or trademark acquisition, operational costs and labour costs)

- Generation change (i.e. retirement of the previous owner), under conditions


“These loans are granted in the context of the Cyprus Entrepreneurship Fund (CYPEF), established by the Republic of Cyprus and aimed at supporting and boosting entrepreneurship in Cyprus. CYPEF is financed by the European Investment Bank, and the underlying loans leverage particularly favourable terms. The European Investment Bank is the European Union’s bank, founded in 1958 under the Treaty of Rome. This loan meets all the eligibility criteria for financing by the Republic of Cyprus and the European Investment Bank.”

Supported by the Republic of Cyprus and the European Investment Bank Group.

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