Cyprus seeks €120m in fifth Recovery and Resilience Facility grant tranche, Finance Ministry says

Cyprus submitted a request last December for the fifth grant tranche of €120 million from the Recovery and Resilience Facility (RRF), linked to the completion of 25 additional milestones, according to a press release issued by the General Directorate for Growth at the Ministry of Finance.

The disbursement is expected by mid-2026, pending approval from the European Commission.

Following the announcement of the disbursement of the fourth grant tranche of €76.9 million to Cyprus, the Finance Ministry said that this brings total funds received to €455 million. Of this amount, 42% corresponds to the available grant resources under the RRF.

"The 42% of Cyprus' allocated grant funding from the Recovery and Resilience Facility has already been received," the press release noted.

The total funding from the RRF amounts to €1.02 billion in grants and €0.2 billion in loans. The €455 million received so far accounts for 38% of the total available funding.

The European Commission has confirmed that Cyprus has successfully met the 16 milestones and targets associated with the fourth tranche, which cover both investments and reforms. Key achievements under this tranche include the completion of the electricity market management system and the establishment of a strategic investment facilitation sector.

"The Recovery and Resilience Plan, along with the timely completion of all reforms and investments, is a major challenge for absorbing significant European funds," the Ministry noted.

It further highlighted that this presents a unique opportunity to utilize European funding amounting to a total of €1.22 billion. It is also added that the completion of all reforms and investments—282 milestones and targets in total—by 2026 is expected to have a substantial impact on Cyprus' economy and society.

(Source: CNA)