The European Investment Bank says that increased its total lending volume in 2009 to an unprecedented 79 billion euro , a 37 per cent rise from 58 billion euro in 2008. This represents a new milestone in providing financial support for the European economy, the bank said on March 8 2010.

Last year, the EIB reinforced its focus on small and medium-sized enterprises (SMEs), (economically weaker regions across Europe ("convergence areas") and the energy sector in the context of the fight against climate change.

In this context, the EIB signed on March 8 in Nicosia  50 million euro agreement with the Co-operative Central Bank Ltd. for financing small and medium-sized enterprises in Cyprus.

The signature ceremony was in the presence of Harilaos Stavrakis, Cypriot finance minister . The agreement was signed on behalf of the EIB by Vice-President Plutarchos Sakellaris and for the Co-operative Central Bank by General Manager Erotokritos Chlorakiotis.

"In 2009 we reached an unprecedented lending volume, as far as our general activity is concerned, as well as our financing in Cyprus. Our lending in Cyprus in 2009 was double than the average annual total over the last four years," Sakellaris said.

"It was also pioneering in opening up new lending possibilities. Further to the importance of EIB lending to SMEs emphasised by the Cypriot government, and especially Minister Stavrakis, we inaugurated in 2009 an unprecedented co-operation with the three largest Cypriot banks for the support of smaller entrepreneurial activity in the country," he said.

"I am pleased to make a further step in this direction, by signing today this new agreement with the Co-operative Central Bank. This allows us to reach even more smaller enterprises, which are the backbone of the Cypriot economy, and simultaneously the local financial system. We stand at the service of Europe, and will continue to play a strong and active role in spurring economic recovery," Sakellaris said.

In 2009, the EIB provided 13 billion euro in credit lines to intermediary banks in the European Union for targeted lending to SMEs, an increase of 55 per cent compared to the year before.

Lending activities in the convergence areas amounted to 29 billion euro (a 36 per cent increase from 21 billion euro in 2008) accounting for 37 per cent of the bank’s total lending volume.

The lending was geographically well-balanced across the EU, according to the bank, with the new member states receiving 13 billion euro.

The third priority - the fight against climate change - resulted in almost 17 billion euro of loans for projects contributing to the reduction of the volume of CO 2 emissions, including renewable energy (4.2 billion euro), energy efficiency (1.5 billion euro), R&D for cleaner transport (4.7 billion euro) and investments in urban transport (5.5 billion euro)

In 2009 the EIB provided in Cyprus a total of  202 million euro, mainly for small and medium-sized enterprises, as well as energy.

"In 2009 the EIB joined forces with the major Cypriot banks - the Bank of Cyprus, Marfin Popular Bank and Hellenic Bank - to support the real economy and help counteract the impact of the crisis by easing SME funding in this difficult period," the bank said.

Through these operations, the EIB provided 138 million euro to support small and medium-sized enterprises (SMEs) and small and medium infrastructure investments carried out by private or public bodies, including local authorities, as well as beneficiaries of any size. This financing is available for investments in the fields of industry, tourism, services, knowledge economy, energy and environmental protection in Cyprus.

The EIB activity in Cyprus was also marked by the funding of Orites, the largest and most advanced wind farm in Cyprus. This paves the way for further developments in the sector and brings the Cypriot government closer to its target and EU’s objective for renewable energy production.

The EIB provided 6 4 million euro for the design, construction and operation of an 82 MW wind farm of 41 turbines which represents 27 per cent of the planned installed wind energy capacity of 300MW by 2020.

The EIB was therefore ready to participate in a finance structure taking direct project risk and financing of the Orites project was one of the innovative transactions that led Euromoney to award the "Lender of the Year" title to the EIB, the bank said.