European Investment Bank (EIB) Loans

  • Scheme beneficiaries

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

  • Loan amount

    Loans are granted in euro from €150.000 to €5 million.

  • Collateral

    Minimum collateral amount 30% on the loan requested.

Answers to all of your questions

  • The financing scheme, as part of the Bank of Cyprus partnership with the EIB, aims to support Cypriot businesses and youth employment. The scheme’s total amount to be allocated to Cypriot businesses, under favourable terms, amounts to €100 million.

  • The following activities are excluded:

     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).

    Financial holding companies and leasing companies.

  • Loan repayment period is 2 12 years.

  • Grace period of up to 2 years for repayment of principal

  • Interest rate is determined according to the customer’s risk. The collaboration of Bank of Cyprus with the EIB provides customers with the opportunity to benefit from favourable pricing.

  • Business meeting  the “Job for Youth” criteria can enjoy a 0.5% discount on interest rate.

  • 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.

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

  • 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

    Are there any excluded activities?

    The following activities are excluded:

     

    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).

    Financial holding companies and leasing companies.

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. Interest rates will be revised for new loans depending on market 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. 

 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.

800.00.800

+35722128000 from abroad
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