EIB: Guarantee program of 700 million with the 4 systemic banks to finance medium-sized enterprises

The European Investment Bank (EIB) and the four systemic banks of Greece have announced that they have agreed a new partnership in the form of a €700 million guarantee program to support medium-sized companies capitalization in Greece.

More specifically, the EIB has committed to cover loan-by-loan 50% of losses that may occur in portfolios of new financings amounting to EUR 1.4 billion to be provided by the four participating banks, Alpha Bank, Ethni Bank, Eurobank and Piraeus.

As a result, eligible businesses with 250 to 3,000 employees will be able to obtain soft loans through the four banks to finance their working capital and investment needs, which are vital to their viability and competitiveness.

These new deals, which are part of the EIB’s pan-European guarantee programme, are expected to mobilise a total of almost €2bn of new capital to eligible mid-caps across the country, taking into account own and third-party resources expected to be raised.

On Wednesday 24 July in Athens, the EIB Vice-President, Yiannis Tsakiris, and the representatives of the four systemic banks launched the new program and underlined the impact of their cooperation in supporting the real economy in Greece, strengthening its competitiveness, safeguarding and creating jobs.

The role of the EIB is strengthened

Guarantees play a critical role in the lending process as, by covering potential credit losses and providing capital relief for guaranteed funds, they can help encourage greater credit risk taking and increase the lending capacity of financial institutions for the benefit of Greek businesses.

This series of agreements strengthens the role of the EIB as an important supporter of businesses of all sizes in Greece. It follows the successful implementation of the guarantees implemented in 2022 in the context of European Guarantee Fund (European Guarantee Fund – EGF).

Through its strong partnerships with the banking sector and using modern and innovative financing tools, the EIB is committed to helping businesses overcome investment barriers and ensuring that the projects it finances are best suited to address market weaknesses and mitigate investment gaps.