This senior loan agreement will allow the Cooperative Central Bank through its network of Co-operative Credit Societies to provide enhanced access to finance to micro-entrepreneurs and will in particular; improve access to the credit market for micro-borrowers even in rural and remote parts of Cyprus.

This transaction was signed under the European Progress Microfinance Facility (Progress Microfinance), funded by the European Commission and the European Investment Bank and managed by the European Investment Fund.

Commenting on the transaction, Chief Executive of the EIF, Richard Pelly said: “We are pleased to be signing our first loan agreement under Progress Microfinance in Cyprus with the Cooperative Central Bank.

I am convinced that this innovative finance will help to benefit micro-enterprises, even in the more remote areas, contributing to economic growth and job creation in Cyprus”.

The General Manager of the Cooperative Central Bank Mr. Erotokritos Chlorakiotis said: “We are pleased to be able to contribute to the achievement of the goals of the Progress initiative of increasing access to finance to micro-businesses in Cyprus with special emphasis on start-up businesses, young and female entrepreneurs, sole traders etc. Through the provision of loans with favourable terms we envisage to play an active role in spurring economic recovery and job creation. ”

The Cooperative Central Bank and its network of Cypriot Cooperative Credit Societies, has committed to doubling the loan amount under this transaction, which will mean that a total loan amount of EUR 16m will be made available to Cypriot micro-businesses.

This agreement will allow the Cooperative Central Bank and the Cyprus Cooperative Sector in general to complement its current SME lending activity and to scale up its micro-lending business in a country where micro-entrepreneurs and SME’s constitute the backbone of the Cypriot economy.

About the European Progress Microfinance Facility (Progress Microfinance)

The European Progress Microfinance Facility (Progress Microfinance) is an EU microfinance initiative established with EUR 200 million of funding from the European Commission and the European Investment Bank. Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Loans of up to EUR 25,000 are made available through eligible microfinance intermediaries participating in the facility.

The European Progress Microfinance Fund does not provide direct financing to micro-entrepreneurs or individuals. EIF acts as Management Company on behalf of the EU Microfinance Platform FCP-FIS - European Progress Microfinance Fund, the main vehicle through which Progress Microfinance is implemented.

About the EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total net commitments to private equity funds amounted to over EUR 5.4bn at end 2010. With investments in over 300 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF commitment in guarantees totaled over EUR 14.7bn in close to 160 operations at end 2010, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Cooperative Central Bank

Cooperative Central Bank is the banker of all registered co-operative societies and the central banker of cooperative credit societies. It is also the Central Body of the affiliated Cooperative Credit Societies.

The Cooperative Credit Sector in Cyprus has a 100 years long history of continuous support of the local economy and of the public in general. Currently, there are 101 Cooperative Credit Societies with more than 425 retail outlets, covering the whole geographical area of Cyprus and employing more than 2850 staff.

Cooperative Central Bank offers a broad spectrum of financial products and services which include banking, investment and insurance services.

Press contacts:

EIF: David Yormesor, Communication officer, e-mail d.yormesor@eif.org, tel +352 2485 81346

Cooperative Central Bank: Efthimios Pantazis, Banking Operations Division Manager, e-mail: EfthimiosPantazis@ccb.coop.com.cy, tel:+357 22 743001

HIGHLIGHTS

European Progress Microfinance Facility