EU approves 1.18 billion euro defense loan for Cyprus under SAFE program

The EU Foreign Affairs Council has approved executive decisions providing Cyprus with approximately 1.18 billion euros in defense funding through the Security Action for Europe (SAFE) initiative. Cyprus is among the first eight member states to receive these affordable, long-term loans, which include an initial pre-financing payment of 177.2 million euros. Defense Minister Vasilis Palmas stated that the funds will be used for modernizing military equipment and boosting domestic defense production, with the first disbursements expected in the second half of 2026. Sources provide different repayment details, with some mentioning a period of up to 45 years and others noting a 10-year grace period. Planned acquisitions include Airbus H145M helicopters, French and German tanks to replace Russian T-80 models, drones, and personnel carriers. A significant portion of the budget is expected to support bilateral defense cooperation with France. A second group of countries, including Greece, is scheduled for approval on February 17, 2026.