ATHENS: From very small businesses and start-ups to mid sized enterprises, more than 5,000 companies will benefit from loans amounting to EUR 640 million.
The European Investment Fund (EIF) and the National Bank of Greece (NBG)have signed three guarantee agreements worth €640 million to improve access to finance for small and medium‑sized enterprises (SMEs) in Greece. These agreements benefit from the support of the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe, the Juncker Plan.
Under the new InnovFin agreement, NBG will provide loans at favourable terms to innovative SMEs and small mid-caps for two years. EIF’s guarantee is provided under the initiative ‘EU InnovFin finance for Innovators’ with the financial backing under Horizon 2020, the EU research and innovation programme. The EU’s support for innovative Greek companies under this transaction is expected to generate a portfolio of EUR 100 million of loans.
The COSME transaction is an extension agreement, which will allow NBG to provide EUR 500 million of loans to around 1,900 small businesses in Greece over three years. EIF will provide NBG with a guarantee under the COSME programme backed by the European Commission, allowing the bank to substantially reduce its collateral requirements, whist making it easier for companies to obtain loans.
In addition, EIF signed an EaSI microfinance guarantee transaction with NBG, supporting EUR 40 million of loans to 3,400 micro-borrowers – very small companies – who have difficulties in accessing credit across the country. The EaSI Guarantee scheme, launched in June 2015 is funded by the European Commission and managed by the European Investment Fund.
European Commissioner, Dimitris Avramopoulos, responsible for Migration, Home Affairs and Citizenship, said: ‘With today’s new financing agreements, the Juncker Plan continues to support Greek companies tangibly and help them grow. From very small businesses and start-ups to mid‑sized enterprises, more than 5,000 companies will benefit from loans amounting to EUR 640 million.
