BUSINESS

Greece, Germany sign deal for IFG

Germany’s state-owned KfW bank is set to contribute 100 million euros to the Institution for Growth in Greece, IFG.

The deal was signed by Greel Development Minister Costis Hatzidakis and KfW Senior Vice-President Dr Lutz-Christian Funke, in the presence of Finance Minister Yannis Stournaras, in Athens on Wednesday.

The investment fund is expected to provide local lenders with funds for investing in medium-sized companies at low interest rates. The organization is also expected to fund infra-structure projects that are not covered by European Investment Bank programs.

Among the institutions expected to participate in the IFG's financing is the European Investment Bank, with the lender expected to sign a memorandum of understanding with Greece in the near future. Meanwhile, the Onassis Foundation has already signed up to contribute 30 million euros to the new fund.

Speaking at the signing ceremony Stournaras noted that following four tough years the economy was stable and showing its first signs of recovery. The KfW deal was expected to act as a "catalyst" in order to attract more investment, the minister said.

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