To stimulate job growth, the European Investment Bank (EIB) will be granting the Co-operative Central Bank of Cyprus (CCB) a €25m loan aimed at small and medium enterprises (SMEs).
An initial finance agreement between the two was signed at a public ceremony in Nicosia attended by EIB president, Werner Hoyer, Minister of Finance Harris Georgiades and EIB vice president Mihai Tănăsescu and general manager of CCB, Marios Clerides.
The EIB started co-operating with CCB in 2010 and has been working with a number of Cypriote banks since. However, this is EIB’s first bank-intermediated operation in Cyprus since the financial crisis struck the country over a year ago.
The Co-operative Central Bank was established in 1937 to provide financial services to co-operative enterprises and their members. Today CCB is one of the largest financial institutions in Cyprus, with over 3,000 employees. The bank also plays the role of the Central Agency of co-operative credit institutions.
EIB works to promote sustainable growth and job creation. According to EIB president, Werner Hoyer, the new loan will help to grow SMEs. Previous EIB loans to CCB have benefited over 260 SMEs.
“With today’s signature we are addressing priority areas for the individual Member State and for the EU as a whole: growth, innovation and jobs. SMEs contribute to all of them,” he said.
Mr Hoyer also believes that the loan granted to CCB could help address youth unemployment. While in Cyprus, Mr Hoyer met with the minister of finance, the minister of foreign affairs, the minister of energy, and the minister commerce, industry and tourism.
He said: “In a bid to support a whole generation across Europe, we developed last year a dedicated youth employment programme, which I am particularly proud to launch for the first time here in Cyprus, in co-operation with our partner CCB. This will extend our successful co-operation and will boost the creation of new professional opportunities for young people.”
As part of an initiative of the European Commission to tackle youth unemployment, now at 32%, the “Jobs for Youth” programme provides favourable financial terms to SMEs in the fields of industry, commercial services and tourism providing they offer employment or training opportunities for young people.
Photo (c) EIB: EIB president, Werner Hoyer with Minister of Finance Harris Georgiades and EIB vice president Mihai Tănăsescu signing the agreement.
