Financial assistance of more than €1.181 billion in defence loans was granted to Cyprus by the European Council under the Security Action for Europe (Safe) fund on Wednesday.

“Today’s decisions show that the EU is not only talking about defence – we are delivering. Through Safe, we are strengthening our security where it matters the most,” Defence Minister Vasilis Palmas said.

The loans are aimed at supporting the Republic’s investments into defence industrial production with a pre-financing payment amounting to more than €177 million.

Wednesday’s decision approved financial assistance to a total of eight member states with the remaining countries including Belgium, Bulgaria, Croatia, Denmark, Portugal, Romania and Spain.

Of these eight, Denmark was granted the highest maximum loan, amounting to €46.79bn whereas Spain received the lowest maximum loan at €1bn followed by Cyprus.

The formal adaptation of the second round of loans for member states will take place on 17 February. The countries include Estonia, Finland, Greece, Italy, Latvia, Lithuania, Poland and Slovakia.

Greece will receive the lowest maximum loan, amounting to €787mn.

These loans form part of the €150 billion of funding that the Commission had allocated to the regulation upon its adoption in May 2025.