The EBRD’s mandate in Cyprus expired at the end of 2020 and the Bank has ceased investing in any new projects on the island, but will continue to manage an existing portfolio.
In Cyprus we focused on:
- Strengthening the financial sector to build up resilience and improve governance
- Supporting the authorities’ privatisation programme
- Assisting corporate restructuring and providing finance to small and medium-sized enterprises
Founding EBRD member Cyprus received recipient country status in May 2014 following a decision by the Bank’s shareholders at the EBRD’s Annual Meeting in Warsaw.
The change in status was requested in February 2014 in a letter which sought EBRD support only for “as long as is strictly necessary to help Cyprus address its transition challenges”.
The Warsaw decision assumes that the EBRD will not engage in new operations in Cyprus after the end of 2020.
A country strategy was adopted on 6 May 2015. The document identified the priorities for the EBRD’s engagement in Cyprus.
The Cyprus economy has recovered from a deep recession which followed the boom period between 2004, when Cyprus joined the EU, and 2008, when it adopted the euro.
However, despite making important progress towards European integration, significant transition challenges and a number of key structural issues had not been addressed and non-performing loans represented a significant issue.
Since then, there has been a remarkable turnaround in the economy. Solid growth from 2015 was accompanied by falling unemployment, careful management of public finances and progress in structural reforms in various sectors of the economy.
During its operations in Cyprus, through a combination of investment, policy dialogue and technical assistance, the Bank made a significant contribution to the stabilisation and recovery of the local economy.
The EBRD's 2017 Annual Meeting and Business Forum was held in Nicosia. In June 2017, the EBRD received an honorary award for its contributions to the economy of Cyprus from the Cyprus Investment Promotion Agency.
In 2017 Cyprus contributed €2,150,000 to facilitate the provision of advisory services to SMEs in the country.
The EBRD’s latest Cyprus strategy was adopted on 6 May 2015