Nicosia, Cyprus. Cyprus will introduce a bridge loan scheme this year to help farmers finance investments before receiving approved grants under the Common Agricultural Policy, Agriculture Minister Maria Panayiotou said on Thursday.
The scheme is intended to address liquidity constraints faced by farmers who have secured subsidies but lack the initial capital needed to implement their projects.
Bank participation
Panayiotou said Bank of Cyprus and Eurobank had formally confirmed their participation in the financing tool through the Association of Banks of Cyprus.
She said the signing of the agreement by the participating banks was a formality.
Funding between investment and subsidy payment
Farmers will need to obtain approval for the relevant subsidy before accessing the scheme.
The bridge loans will cover the period between the implementation of an investment and the payment of the subsidy, providing capital for farmers to proceed with their projects.
Support for agricultural investment
Panayiotou said strengthening the agricultural sector required suitable financial tools and faster procedures to provide farmers with greater financial security.
Eurobank general manager Fivos Stasopoulos described the initiative as an important partnership aimed at supporting investments that improve the competitiveness and productivity of the agricultural sector.
