EIB and Greece’s Systemic Banks Launch €700 Million Guarantee Programme for Mid-Caps

EIB and Greece’s Systemic Banks Launch €700 Million Guarantee Programme for Mid-Caps

(IN BRIEF) The European Investment Bank (EIB) and Greece’s four systemic banks—Alpha Bank, National Bank of Greece, Eurobank, and Piraeus—have introduced a €700 million guarantee programme to support mid-cap businesses. This initiative aims to facilitate €1.4 billion in new financing by covering 50% of potential loan losses, enabling businesses with 250 to 3,000 employees to secure loans at favorable terms. The programme, part of the EIB’s EU-wide linked risk-sharing initiative, is expected to mobilize nearly €2 billion in total financing. The funding will help mid-sized businesses with working capital and investments, enhancing their sustainability and competitiveness. The collaboration highlights the EIB’s commitment to boosting Greece’s economy, fostering job creation, and supporting businesses in overcoming investment barriers.

(PRESS RELEASE) LUXEMBOURG, 25-Jul-2024 — /EuropaWire/ — The European Investment Bank (EIB) and Greece’s four systemic banks—Alpha Bank, National Bank of Greece, Eurobank, and Piraeus—have agreed to a €700 million guarantee programme designed to support mid-cap businesses in Greece. This initiative aims to facilitate €1.4 billion in new financing by covering 50% of any potential loan losses, thereby stimulating lending to businesses with 250 to 3,000 employees at favorable terms.

The programme, part of the EIB’s EU-wide linked risk-sharing (LRS) initiative, is expected to mobilize nearly €2 billion in total financing, including contributions from third-party resources. This financing will enable eligible mid-sized businesses to secure loans for working capital and investments, which are crucial for their sustainability and competitiveness.

On July 24 in Athens, EIB Vice-President Yannis Tsakiris and representatives from the four banks inaugurated the programme, emphasizing its potential to boost Greece’s real economy, enhance competitiveness, and support job creation. Tsakiris highlighted the importance of liquidity access for Greek businesses, especially amid rising interest rates.

Alpha Bank’s General Manager of Wholesale Banking, Yannis Emiris, expressed the bank’s commitment to supporting small and medium-sized enterprises (SMEs) and noted that the EIB partnership enhances their ability to offer favorable financing terms, thereby promoting growth and job creation.

National Bank of Greece’s General Manager of Corporate and Investment Banking, Vassilis Karamouzis, highlighted the bank’s long-term collaboration with the EIB, which has provided over €3 billion in loans. He stressed the importance of the new guarantee programme in extending favorable financing to more companies across Greece.

Eurobank’s General Manager, Head of Large Corporate & Loan Syndications, Panagiotis Lymperopoulos, reiterated the bank’s dedication to supporting entrepreneurship and the Greek economy’s growth. He emphasized the importance of the EIB partnership in modernizing the Greek production model and fostering sustainable growth.

Piraeus Bank’s Executive General Manager, Chief Corporate & Investment Banking, Theodore Tzouros, praised the EIB as a significant partner. He noted that the new programme builds on a history of successful collaboration that has facilitated over €5 billion in lending to support Greek businesses.

The guarantees provided under this programme will play a crucial role in the lending process by covering potential credit losses and offering capital relief, thus encouraging banks to take on more risk and increase their lending capacity to benefit Greek businesses.

This new agreement underscores the EIB’s commitment to supporting businesses of all sizes in Greece and follows the successful implementation of the European Guarantee Fund (EGF) guarantees in 2022. Through its innovative financial instruments and strong banking partnerships, the EIB aims to help businesses overcome investment barriers and address market failures.

About the EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that further EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Bank Group (EIB Group), consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signatures in Greece of €2.5 billion in 2023, 36% of which went to supporting financing for SMEs and mid-caps. Overall, the EIB Group signed €88 billion in new financing in 2023.

Media Contact:

Wood Graham
g.wood@ext.eib.org
+352 4379 – 70512

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank