Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and RCB Bank signed the first EFSI agreement in Cyprus, providing EUR 10 million to support innovative small and medium-sized enterprises (SMEs). This initiative, part of the European Fund for Strategic Investments (EFSI), aims to enhance access to finance for SMEs, particularly in the innovation sector, which is crucial for economic growth in Cyprus.
The tailored solution involved RCB Bank offering attractive loans to SMEs and mid-caps over a two-year period, backed by EIFs guarantee under the EU InnovFin Finance for Innovators initiative. This program is designed to improve access to loan finance for innovative businesses, with guarantees covering debt financing ranging from EUR 25,000 to EUR 7.5 million. The agreement also included provisions for significantly reduced collateral requirements, enabling many SMEs that might otherwise struggle to secure financing to access the necessary funds for their growth and investment plans.
As a result of this agreement, RCB Bank was able to develop new financial products that cater specifically to the needs of SMEs, facilitating the support of numerous businesses that contribute to the national innovation agenda. The initial loan agreement has already supported over 10 new investments, demonstrating the immediate impact of this financing on the local economy. Additionally, the EIF and EIB's ongoing commitment to providing liquidity and support to the Cypriot market reflects a broader strategy to stimulate job creation and economic resilience in the region.