articles | 18 March 2019

Government seeking European funds for gas infrastructure

Finance Minister Harris Georgiades said recently that the government is in talks with the European Investment Bank (EIB) over the latter’s financing of natural gas infrastructures.

Chiming in, EIB President Werner Hoyer, currently on a visit to the island, appeared optimistic that the bank would take part in the project.

Georgiades and Hoyer were speaking during a joint press conference in Nicosia.

“From 2013 until today we have signed financing agreements of a value of €1.5bn,” the Finance Minister said.

“Half of that amount is aimed at small and medium size enterprises through Cypriot banks, a tool which has contributed in a decisive way in the Cypriot economy’s recovery,” he noted.

He added that during their meeting on Monday, including with President Nicos Anastasiades, “we have reconfirmed that this powerful and important cooperation will continue.”

However, Georgiades pointed out, “we are also interested in cooperating, financing, for a project of strategic importance, that of funding infrastructures for natural gas to be imported and used in Cyprus.”

Talks are underway, he noted, adding that “we are interested in financing of up to €150m and I hope that in the context of our cooperation we will have a positive outcome.”

Asked to give further details, Georgiades said only that efforts are ongoing and that there is nothing to announce just yet.

He said however that the government has already secured EU funding and is now interested in financing by the EIB.

“I hope by the end of the year we will be in a position to announce something.”

For his part, Hoyer confirmed that the EIB is in talks with the government for the project.

“I am quite optimistic,” he noted, adding that “we are presently developing and publicly discussing a new energy lending policy, but I believe that even within the framework of the new policy we will be able to be part of this exercise.”

The potential project was also important in terms of climate action, since replacing current fossil fuels by natural gas would be beneficial to Cyprus and the EU alike.

Referring to the €1.5bn investment made by the EIB since 2013, Hoyer said that “it reflects the fact that…when the financial crisis hit and many banks left the country, we strongly increased our activities in Cyprus and we have not regretted it.

“The Cypriot people faced some challenging years but we are confident that these are now behind us.”

EIB director Anita Furstenberg said that in 2018 the bank provided €140m to support private-sector investment in Cyprus through new credit lines managed by Cypriot banks.

“Looking ahead EIB’s activity in Cyprus is expected to remain robust in 2019,” she noted.

Georgiades meanwhile expressed the government’s full and unreserved support to EIB’s plans for the bank to be fully capitalised following a possible Brexit.

“We are absolutely convinced that EIB must continue to have a leading role,” he said.

Source: Cyprus Mail

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