The European Bank for Reconstruction and Development (EBRD) will begin investing in Cyprus, with this investment being time-limited, aimed at helping the country through a severe economic crisis.
The EBRD's board made this decision at its annual meeting held in Warsaw, representing the bank's 66 shareholders.
The bank stated that this short-term investment will be a positive contribution to the reconstruction and reform of the Cypriot economy.
Official sources also indicated that the status of Cyprus has temporarily changed to "recipient country," which applies to the entire island, while also noting that after 2020, the EBRD will not participate in new economic operations in Cyprus.
The EBRD project aims to strengthen the financial sector, making it more resilient to future shocks and enhancing its regulation.
The bank will also support the authorities' privatization projects and assist in corporate restructuring, providing financing to small and medium-sized enterprises to help achieve the goals of the Troika project.
The bank will subsidize other international organizations and international financial institutions actively operating in Cyprus. The EBRD also plans to establish an office on the island and hire local staff.
According to the Cypriot Minister of Finance, the total amount of financing may reach 700 million euros.
