EU executive approves Cyprus' 1.2 bln euro COVID recovery plan

The European Union's executive approved on Thursday Cyprus' plan to spend 1.2 billion euros ($1.41 billion) worth of special funds from the EU, aimed at restarting economic growth mauled by the COVID-19 pandemic.

The European Union's executive approved on Thursday Cyprus' plan to spend 1.2 billion euros ($1.41 billion) worth of special funds from the EU, aimed at restarting economic growth mauled by the COVID-19 pandemic. The 1.2 aid, which Cyprus won't have to pay back, is part of the EU's unprecedented economic stimulus totaling 800 billion euros to be distributed among the 27 member states.

Cyprus plans to use 41% of the total allocated funds to support climate objectives, including green taxation, the liberalization of the electricity market, and facilitating energy renovations in buildings, the EU Commission said. The plan also includes measures to promote digitalization of public services, to support early childhood education, and to reduce risks in the banking sector related to the legacy non-performing loans. ($1 = 0.8483 euros)