New financial tool launched for Cypriot farmers to bridge liquidity gaps

On July 30, 2026, the Cypriot Minister of Agriculture, Rural Development and Environment, Maria Panayiotou, announced a landmark agreement to support the agricultural sector. In a meeting with the Association of Cyprus Banks, represented by General Manager Marios Skandalis, along with executives from Eurobank (Phoebus Stasopoulos) and the Bank of Cyprus (Theodosis Theodosiou), officials finalized a new targeted financing tool.

This initiative aims to resolve a long-standing liquidity issue for farmers who, while approved for Common Agricultural Policy (CAP) grants, often struggle to provide the initial capital required to begin projects before the government funding is disbursed. By offering favorable lending options, the tool facilitates the implementation of vital investments that were previously delayed or cancelled due to cash flow constraints.

The project represents a successful collaboration between the public and private sectors, with the Bank of Cyprus and Eurobank confirming their participation via the Association of Cyprus Banks. According to Minister Panayiotou, the mechanism is expected to be implemented within the year, pending the formal signing of the final agreement. Farmers will be able to submit requests directly to these institutions to utilize the new funding flexibility.