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Cyprus to Receive Initial Funds from SAFE in Second Half of 2026, Says Palmas

Published February 12, 2026, 09:29
Cyprus to Receive Initial Funds from SAFE in Second Half of 2026, Says Palmas

The Council of the European Union has approved a funding package under the SAFE framework for eight member states, including Cyprus, totaling €1.2 billion for defense equipment programs. The funding will be provided in the form of a loan with favorable terms, a low interest rate and a repayment period of up to 45 years. Defense Minister Vasilis Palmas stated that the first funds are expected to be drawn by the Ministry of Defense in the second half of 2026, in coordination with the Ministry of Finance. He noted that a large portion of the funds will be allocated to bilateral Cyprus-France defense cooperation programs. At the same time, emphasis will be placed on strengthening the local defense industry. The SAFE (Security Assistance Framework) funding is a significant boost to strengthen Cyprus's defense capabilities, given the geopolitical challenges in the region.