Cyprus to establish new Business Development Organisation

Cyprus is expected to establish its new Business Development Organisation (CBDO) within the next 12 to 18 months, creating the country's first dedicated public development finance institution aimed at improving access to funding for small and medium-sized enterprises (SMEs), startups and self-employed professionals. The organisation will begin operations following the appointment of its seven-member board of directors, with an initial two-year transition period to develop its financing programmes and operational framework.

The CBDO will be designed to address financing gaps for businesses that struggle to obtain conventional funding due to limited collateral, short operating histories or higher perceived risk. It will be authorised to provide loans, guarantees and other financial instruments while conducting market studies to identify unmet financing needs and guide future support programmes.

The organisation will also support entrepreneurship, strengthen business competitiveness and promote investment in innovation, digital transformation and the green transition. It has been allocated an initial € 60 million in state capital and will be able to secure additional funding through its own operations, borrowing from European and international financial institutions, and state guarantees for approved strategic priorities.

Source:

Cyprus Business Development Organisation to become operational within 18 months 29 July 2026