Eurobank extended last year’s agreement with the European Investment Fund (EIF) to provide financing for small businesses, doubling the amount of available funding to 260 million euros, Greece’s third largest lender said on Wednesday. Small businesses form the backbone of Greece’s economy, which is gradually recovering from a multi-year deep recession.
The credit facility is part of the European Union’s COSME program that seeks to improve the competitiveness of small-size firms. COSME offers loan guarantees to banks to help them increase lending with reduced collateral requirements. The financing can cover companies’ needs for working capital and investments in fixed assets.
The European Investment Fund is 59.9 percent owned by the European Investment Bank. [Reuters]