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Finance Ministry Responds to Auditor General: €1.02 Billion Absorption Feasible

Published March 19, 2026, 17:18
Finance Ministry Responds to Auditor General: €1.02 Billion Absorption Feasible

The Ministry of Finance responded to the Auditor General's report on the Recovery and Resilience Plan, assuring that it remains committed to fully absorbing the €1.02 billion that Cyprus is entitled to from the Recovery and Resilience Facility (RRF) by the end of 2026. As of December 2025, payment requests for €673 million have been submitted, representing 66% of the total funding. €589.5 million has already been received from the RRF, including advances. The two remaining tranches, amounting to €347 million, will be submitted in 2026, as originally scheduled. The Ministry of Finance acknowledges the challenges highlighted by the Auditor General but expresses optimism about achieving the targets. Regarding the Auditor General's concerns about potential delays in the implementation of the Plan, the Ministry of Finance emphasizes that the progress made so far, combined with targeted amendments, ensures, under certain conditions, the full absorption of available resources. The entire budget of €1.02 billion has been committed through the signing of public contracts or agreements with beneficiaries. A large number of investment projects have already been completed, while the remaining ones are underway and are expected to be completed by mid-2026. In addition, 95% of the significant reforms have been completed, either through the passage of legislation or through decisions of the executive branch. The Ministry of Finance believes that, with the commitment of all stakeholders, full absorption of the funds is feasible.