EtaE: Agreement with the four systemic banks for loans of 4.5 billion euros to SMEs

business loans

The European Investment Fund (ETaE) signed guarantee contracts with the four largest Greek banks, in order to mobilize financial resources of more than 4.5 billion euros for the small and medium businesses, the green transition of the Greek economy as well as the digital transition of country.

As stated in an announcement, the Member State component of InvestEU for Greece supports a series of capped portfolio guarantees, by utilizing resources of the country’s national recovery and resilience plan (NRP). The EIF, a member of the European Investment Bank Group (EIB Group), provides the guarantees to Alpha Bank, Eurobank, the National Bank of Greece and Piraeus Bank, which are the leading financiers of the country and long-term partners of the EIB Group. Through these guarantees, banks are able to provide more financing to SMEs on favorable terms.

The signing ceremony with the four banks took place in Athens and marks the beginning of the implementation of the financing mandate of the EIF. Banks, with the support of the EU guarantee, are now able to provide valuable funding to eligible businesses across the country.

The EIF guarantee enables the partner banks to offer improved financing terms, which include lower interest rates, reduced collateral requirements and reduced down payment obligations for investment loans. In addition, thanks to the EIF guarantee, banks can offer longer loans, increase the volume of financing and at the same time support excluded sectors, such as start-ups.

The portfolio guarantee products offered are as follows:

  • the sustainability guarantee, which aims to support the financing of investments in climate action, energy efficiency and renewable energy sources
  • the SME competitiveness guarantee, which focuses on improving SMEs’ access to finance
  • the innovation and digital transformation guarantee, which improves the access conditions of Greek research and innovation companies to funding and supports the adoption of digital technologies and digital transformation of Greek SMEs and mid-cap companies