**New Financing Scheme to Support Farmers in Cyprus**
A new bridge loan scheme aimed at providing financial support to farmers in Cyprus is set to be introduced this year. The initiative, announced by Agriculture Minister Maria Panayiotou, is designed to help farmers access funding before they receive grants under the Common Agricultural Policy (CAP). This move addresses a long-standing liquidity issue that many farmers face while awaiting the approval and disbursement of subsidies.
Minister Panayiotou made the announcement following a meeting with representatives from the banking sector, where she emphasized the importance of the scheme in alleviating financial pressures on farmers. “For the first time, Cypriot producers have access to an integrated financial tool that provides a solution to a long-standing problem – the lack of liquidity needed to implement essential investments,” she stated.
The new scheme will allow farmers to secure interim financing from participating banks, enabling them to proceed with their investments without delay. This financing will bridge the gap between the implementation of an investment and the eventual payment of the subsidy, thus providing the necessary capital for farmers to carry out their projects effectively.
Two major banks, Bank of Cyprus and Eurobank, have agreed to participate in the scheme, with the formal signing of the agreement expected to be a mere formality. Eurobank’s general manager, Fivos Stasopoulos, described the initiative as an “important partnership” that aims to bolster the competitiveness and productivity of the agricultural sector. He highlighted that the bridge loans would be offered at preferential lending rates, significantly reducing borrowing costs for farmers.
To benefit from the scheme, farmers must first obtain approval for their relevant subsidies. Once approved, they can apply for interim financing from one of the participating banks. The bridge loans will be repaid once the subsidy is disbursed, ensuring that farmers can manage their cash flow effectively during the waiting period.
Marios Skandalis, director general of the Association of Cyprus Banks, praised the collaboration between the agriculture ministry and the banking sector, calling it an “essential step” in supporting the primary sector. He noted that the new financial tools would provide farmers with greater flexibility and direct access to the resources necessary for making effective use of state funding.
The implementation of the scheme is expected to be gradual, with funding disbursed in phases to cover both the initial stages of project implementation and the main phase when the majority of grants are paid out. This approach aims to ensure that farmers receive the financial support they need at critical points in their investment timelines.
Bank of Cyprus retail banking director Theodosios Theodosiou expressed his satisfaction with the project, reiterating the bank's commitment to supporting the agricultural sector. He acknowledged the vital role that farmers play in the economy, food security, and the sustainability of local communities.
As the scheme rolls out, interested farmers will be able to directly contact the participating banks to initiate the application process, which will include a preliminary assessment of their creditworthiness.
Overall, this new bridge loan scheme represents a significant development in the agricultural financing landscape in Cyprus, aiming to empower farmers and enhance the viability of the agricultural sector. With the support of the banking community and the government, the initiative seeks to address the financial challenges faced by farmers, ultimately contributing to the growth and sustainability of agriculture in the region.