Cyprus signs EU agreement to receive €1.18 billion for rearmament and defence modernisation

The Republic of Cyprus has officially concluded a loan agreement with the European Commission under the large-scale European SAFE (Security Action for Europe) programme. Under the signed document, the island state will receive a long-term low-interest loan of €1.18 billion aimed at strengthening its defence capabilities and modernising its armed forces. Cyprus became the sixth country in the European Union to finalise an agreement under this initiative.

The document was signed by Cyprus Finance Minister Makis Keravnos, Head of the Public Debt Management Office Chrysavgi Chrysostomou-Lapatioti, and on the EU side by Commissioner for Defence and Space Andrius Kubilius and Commissioner for Budget Piotr Serafin. European leaders noted that the allocated funds will begin flowing to Cyprus’s defence sector and industry in the near future.

Earlier, Cyprus Defence Minister Vassilis Palmas explained that SAFE programme funding is planned for a five-year period. The allocated resources will be directed to the targeted modernisation of the National Guard’s land, naval, air, and special forces units. Particular attention in the modernisation plan is devoted to upgrading maritime and aviation infrastructure, which will allow Cyprus not only to strengthen its deterrence capabilities, but also to effectively fulfil its obligations within pan-European humanitarian missions and crisis-management programmes in the Eastern Mediterranean.