Cyprus launches new financial tool to support farmers' liquidity

The Cypriot Ministry of Agriculture, Rural Development and Environment has finalized an agreement with the Association of Banks of Cyprus to introduce a new targeted financial tool for the agricultural sector. The initiative, confirmed on July 30, 2026, involves the participation of the Bank of Cyprus and Eurobank to provide bridge loans to local farmers.

The tool is designed to address a persistent liquidity gap that previously prevented producers from implementing essential investments after receiving approval for grants under the Common Agricultural Policy (CAP). Previously, many farmers lacked the necessary start-up capital to begin their projects while waiting for the disbursement of state subsidies, which often led to delays or project cancellations. By offering favorable financing, this mechanism allows beneficiaries to proceed with their investments immediately.

According to Agriculture Minister Maria Panayiotou, who met with banking representatives Marios Skandalis, Phoebus Stassopoulos, and Theodosis Theodosiou, only the formal signing of the agreement remains. The scheme is expected to be fully implemented by the end of the year, marking the realization of a policy proposal supported by the DIPA party and initiated under former minister Petros Xenophontos.