The loans will go towards small and medium size enterprises (SMEs). The relevant decision was taken on Wednesday by the Council of Ministers.
Deputy Government Spokesman Victoras Papadopoulos said the loans will be given to five banks to fund SMEs and mid-cap companies in Cyprus.
The Bank of Cyprus will receive a €100 million loan, RCB will receive €20 million, the Cyprus Development Bank will receive €15 million, the Hellenic Bank will receive €75 million and the Universal Saving Banks €15 million.
Papadopoulos said that through this decision the EIB financing programme for the SMEs is being extended, including more banks in it.