Greek lenders and EIB boost mid-caps funding
The European Investment Bank (EIB) and Greece’s four systemic banks have agreed to a new collaboration in the form of a 700 million-euro guarantee program to support mid-caps in Greece.
The EIB has committed to cover on a loan-by-loan basis 50% of any losses that may incur in portfolios of €1.4-billion worth of new financing to be granted by the four participating banks, Alpha, National, Eurobank and Piraeus.
As a result, eligible businesses with between 250 and 3,000 employees will be able to get loans at favorable terms through the four banks to finance their working capital needs and investments, which are vital for their sustainability and competitiveness.
These new agreements, which are part of the EIB’s EU-wide linked risk-sharing (LRS) program, are expected to mobilize a total of almost €2 billion worth of fresh financing to eligible mid-caps across the country, when own and third-party resources that are expected to be raisedt are taken into account.
