The European Bank for Reconstruction and Development (EBRD) has adopted a Country Strategy for Cyprus which sets out the areas of engagement and priorities for the Bank’s activities in the country.
Cyprus is a founding member of the EBRD and became a shareholder of the Bank in 1991. It became a country of operations of the EBRD in May 2014 when the Board of Governors approved a request from the Government to help Cyprus addressing its transition challenges and contribute to the efforts to reform and restructure the Cyprus economy.
The EBRD’s engagement in Cyprus is temporary and envisaged to last until the end of 2020. According to the decision by its shareholders, the EBRD is active on the whole territory of the island and offering its finance and business advisory for private sector restructuring and the expansion of markets.
The Country Strategy defines the following three priorities for the Bank in Cyprus:
- Support for financial sector restructuring to increase resilience, restore confidence and improve corporate governance, closely linked to corporate restructuring efforts;
- Support for privatisation, especially in support of the implementation of the government’s privatisation programme as well as expanding the use of private concessions and public private partnerships;
- Support for corporate restructuring, including assistance with corporate restructuring and new financing in order to enhance competitiveness and diversification of the local economy across the island, including finance and advice for SMEs as well as improving access to electricity and enhancing resource efficiency.
The overarching strategic focus of the EBRD in Cyprus is to support transition with institution and market enhancement and deep economic restructuring. This is in turn should help the country to overcome the deep economic and financial crisis from which it has started to recover.
To date, the Bank has invested over €100 million in Cyrpus and is preparing further investments for 2015 and the following years.