The European Bank for Reconstruction and Development (EBDR) has agreed to finance Cyprus for a limited period to help the island overcome the problems caused by the deep economic crisis, it was announced on Thursday.
The agreement, which will see Cyprus becoming a recipient country until 2020, was announced by Finance Minister Harris Georgiades through his Twitter account.
“EBRD decides to commence operations in Cyprus.”
In a statement submitted to the EBRD’s annual meeting on Wednesday, the minister said the bank’s operations in Cyprus would significantly contribute in addressing the short and medium-term financial, fiscal and structural challenges the country faces today.
EBRD will support Cyprus’ privatisation programme and assist with corporate restructuring.
“The bank will also work to strengthen the financial sector to make it much more robust, much more resilient,” EBRD President Sir Suma Chakrabarti said, adding that there was a major need to restructure and rebalance the Cyprus economy.
The EBRD president stressed that “with the full support of the parties involved” the bank will be providing financing across the whole of Cyprus, for the benefit of all the people who live on the island.