Cyprus has received its first payment of €177.2 million under the Security Action for Europe (SAFE) defence financing instrument, representing 15% of its total allocation of €1.2 billion.
SAFE is a €150 billion financial instrument providing loans to member states. It primarily funds joint procurement of ammunition, missiles, air defence and ground combat systems produced within the EU. It forms part of the European Commission's ReArm Europe and Readiness 2030 plan, which aims to unlock more than €800 billion in defence investment across the European Union.
The pre-financing will allow Cyprus to advance key defence investments, strengthen resilience and upgrade its military capabilities in line with common European objectives. SAFE is designed to enable swift, coordinated action, improve the ability of European forces to work together and strengthen Europe's defence industry, including through joint procurement and closer cross-border cooperation.
Andrius Kubilius, the EU's Commissioner for Defence and Space, said: "Today's pre-financing for Cyprus under SAFE shows Europe's commitment to strengthening our common security and defence. This support will help Cyprus invest faster in the capabilities it needs, while contributing to our common European objectives of a stronger, more resilient and more connected defence industry. SAFE is about solidarity, readiness and ensuring that member states can deliver for Europe's security together."
The pre-financing payment follows the completion of all required procedural steps and reflects the EU's commitment to providing timely, practical support through SAFE. Further payments will follow as agreed milestones and implementation requirements are met.
The SAFE instrument is financed by EU borrowing on the financial markets, which allows for competitively priced and attractively structured long-duration loans to requesting member states. The terms of the SAFE loans benefit from the EU's strong credit rating. All SAFE loans will be repaid by the beneficiary member states.
