The SAFE programme offers Cyprus the opportunity to further modernise its armed forces in a more interoperable and structured way, Defence Minister Vasilis Palmas said on Wednesday.
Speaking to state radio, he noted that the initiative is expected to strengthen both military capability and defence industry development.
€1.2 billion loan framework
Commenting on the signing of the loan agreement, the Minister said that several procedural issues still need to be completed before Cyprus can begin drawing funds.
The SAFE programme includes a total loan allocation of €1.2 billion, although he clarified that the full amount will only be used if necessary for defence needs.
Coordination with Finance Ministry
Palmas added that, as this is a loan agreement, consultation with the Ministry of Finance is required before any funds are released.
He stressed that the process aims to ensure proper financial oversight and alignment with national priorities.
Focus on defence capability upgrade
The SAFE programme in Cyprus is expected to contribute to the broader strengthening of the defence posture, while also supporting the development of the country’s defence industry.
Further procedural steps are expected before the first tranche of funding is activated.
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