EU grants Cyprus more than €1.181 billion in defence loans under Safe fund

Nicosia, Cyprus. The European Council granted Cyprus more than €1.181 billion in defence loans under the Security Action for Europe (Safe) fund on Wednesday. The loans include a pre-financing payment of more than €177 million.

Cyprus funding under Safe

Defence Minister Vasilis Palmas said the decision showed the EU was “delivering” on defence through Safe and strengthening security.

The loans are aimed at supporting the Republic’s investments into defence industrial production.

Wider package for eight member states

Wednesday’s decision approved financial assistance to eight EU member states: Cyprus, Belgium, Bulgaria, Croatia, Denmark, Portugal, Romania and Spain.

Among these, Denmark was granted the highest maximum loan at €46.79 billion. Spain received the lowest maximum loan at €1 billion, followed by Cyprus.

Next loan round and overall allocation

The formal adaptation of the second round of loans for member states is scheduled for 17 February and will include Estonia, Finland, Greece, Italy, Latvia, Lithuania, Poland and Slovakia.

In that round, Greece will receive the lowest maximum loan at €787 million.

The loans form part of €150 billion of funding that the European Commission allocated to the regulation upon its adoption in May 2025.

How do you think Cyprus will use the Safe loans to support defence industrial production?