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EIB Discusses Funding for Major Defense Investments in Cyprus

Published March 3, 2026, 17:10
EIB Discusses Funding for Major Defense Investments in Cyprus

The European Investment Bank (EIB) is increasing its role in the defense sector, particularly in light of the crisis in the Middle East. EIB President Nadia Calvino announced that discussions are underway with the Cypriot Ministry of Defence to finance major investments in both defense and dual-use projects. The EIB is working closely with European institutions and NATO to support strategies and priorities in the defense sector, such as the development of drones, space technologies, and radar, as well as investments in defense funds. The EIB's Defence Equity Facility is expected to exhaust its initial capital of €175 million by 2026, with the possibility of expanding the mechanism and tenfold increase in size based on market demand. The EIB is set to announce the largest investment to date by the European Investment Fund (EIF) in the defense sector, through a German investment fund that will support innovative companies. This fund is a precursor to the proposal included in the 2030 Defense Readiness Roadmap and the Defense Industry Transformation Roadmap. The EIB responds to the demand for investment in security and defense sectors, taking into account developments in the Middle East. It is emphasized that the EIB aims to contribute to strategies and priorities formed by Ministries of Defence and defense authorities at European and national levels, strengthening European defense capability and security.