Cyprus Government will put 250 million euros in its coffers from SURE

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The European Commission has disbursed € 14 billion to nine EU countries in the second tranche of financial support to the Member States through SURE.

The European Commission has disbursed € 14 billion to nine EU countries in the second tranche of financial support to the Member States through SURE.

Cyprus will receive a total of 250m euros.

The Commission said in a statement that Croatia received € 510 million, Cyprus € 250 million, Greece € 2 billion, Italy € 6.5 billion, Latvia € 120 million and Lithuania € 300 million. Malta EUR 120 million, Slovenia EUR 200 million and Spain EUR 4 billion.

This support, in the form of soft loans, will help Member States to deal with sudden increases in public expenditure on maintaining employment.

In particular, they will help cover the costs directly related to the funding of national short-term work programs and other similar measures they have introduced in response to the coronavirus pandemic, including the self-employed.

At the end of October, Italy, Spain and Poland had already received a total of € 17 billion through SURE.

Once all SURE disbursements are completed in the 9 countries receiving financial support today, Croatia will receive 1 billion euros, Cyprus 479 million euros, Greece 2.7 billion euros, Italy 27.4 billion euros, Latvia 192 million euros Lithuania EUR 602 million, Malta EUR 244 million, Slovenia EUR 1.1 billion and Spain EUR 21.3 billion.

Today’s disbursement follows the second issue of social bonds through the European SURE, which is characterized by very strong investment interest.

The SURE instrument can provide financial support of up to € 100 billion in all Member States. The Commission has so far proposed € 90.3 billion in financial support to 18 Member States. The next disbursements will take place during the following months, after the respective bond issues.

What they said to the Commission

European Commission President Ursula von der Leyen said: “The second wave is hitting Europe hard. The EU is here to support. We want to protect people from this virus and we also want to protect their jobs, as this crisis is affecting businesses as well. Many jobs are at stake. With SURE, we mobilize loans of up to € 100 billion in EU countries to fund short-term work programs. This second disbursement of € 14 billion will help employees earn income. More will come. “

Commissioner Johannes Hahn, Head of Budget and Administration, said: “The second edition of SURE has once again been a huge success and I am delighted that as a result citizens in most of our Member States have received the necessary support from time to time during the crisis. “

 Economy Commissioner Paolo Gentiloni said: “After the second issue of SURE social bonds, which were overwhelmed again, we are now handing over the € 14 billion raised in nine EU countries. In these dark times for so many European workers and companies, I’m proud that the Commission is helping to bring hope and support. “

Disbursement history

On 10 November, the European Commission issued social bonds for the second time under the EU SURE instrument, worth a total of € 14 billion. The issue consists of two bonds, with 8 billion euros expected to be repaid in November 2025 and 6 billion euros due for repayment in November 2050.

The issue received a huge response from the capital markets and the bonds were 13 and 11.5 times more in demand, respectively, for the period of 5 and 30 years, resulting in favorable pricing terms for both bonds.

The terms on which the Commission borrows are transferred directly to the beneficiary Member States. EU-based SURE bonds benefit from a social bond label. This gives investors confidence that the money raised will serve a truly social purpose.