The European Bank for Reconstruction and Development (EBRD or Bank) will start investing in Cyprus, most likely for a limited period, to help the country overcome the transitional challenges that have emerged during its severe economic crisis.

The EBRD’s Board of Governors, which represents the Bank’s 66 shareholders, took the decision at the EBRD’s annual meeting in Warsaw.

The Bank said that a temporary engagement by the EBRD would “represent a positive contribution to efforts to reform and restructure the Cyprus economy”.

An official announcement notes that the agreement on the temporary change in Cyprus’ status to “recipient country”, which applies to the whole of the island, assumes that the Bank will not engage in new operations in Cyprus after the end of 2020.

The EBRD projects will aim to strengthen the financial sector, making it more robust to future shocks and improving its governance.

The Bank will also support the authorities’ privatisation programme and it will assist in corporate restructuring while also providing finance to small and medium-sized enterprises, in support of the objectives of the Troika programme.

The Bank’s operations will complement those of other international organisations and international financial institutions active on the island. The EBRD intends to establish a local office in Cyprus with resident staff.

According to the Cyprus Minister of Finance, total financing may reach €700 million (Source: www.goldnews.com.cy).The European Bank for Reconstruction and Development (EBRD or Bank) will start investing in Cyprus, most likely for a limited period, to help the country overcome the transitional challenges that have emerged during its severe economic crisis.

The EBRD’s Board of Governors, which represents the Bank’s 66 shareholders, took the decision at the EBRD’s annual meeting in Warsaw.

The Bank said that a temporary engagement by the EBRD would “represent a positive contribution to efforts to reform and restructure the Cyprus economy”.

An official announcement notes that the agreement on the temporary change in Cyprus’ status to “recipient country”, which applies to the whole of the island, assumes that the Bank will not engage in new operations in Cyprus after the end of 2020.

The EBRD projects will aim to strengthen the financial sector, making it more robust to future shocks and improving its governance.

The Bank will also support the authorities’ privatisation programme and it will assist in corporate restructuring while also providing finance to small and medium-sized enterprises, in support of the objectives of the Troika programme.

The Bank’s operations will complement those of other international organisations and international financial institutions active on the island. The EBRD intends to establish a local office in Cyprus with resident staff.

According to the Cyprus Minister of Finance, total financing may reach €700 million (Source: www.goldnews.com.cy).