FINANCE

EIB inks 730 mln-euro agreements for business financing, electricity distribution

eib-inks-730-mln-euro-agreements-for-business-financing-electricity-distribution

The European Investment Bank (EIB) signed two agreements in Athens on Wednesday totaling 730 million euros, aimed at strengthening business financing and upgrading Greece’s electricity network.

Under the first deal the EIB will provide 400 million euros in support for the Hellenic Development Bank to facilitate access to funding to more small and medium-sized businesses and larger enterprises in Greece to deal with the impact of the pandemic.

The 400 million euros from the loan agreement will grow up to three times through cooperation with the banking system to finance the real economy and Greek entrepreneurship, said Athina Chatzipetrou, president and chief executive of the Hellenic Development Bank, in a press statement.

Under the second agreement, Greece’s largest power utility – the Public Power Corporation – will receive a total of 330 million euros under a 20-year loan to help upgrade electricity distribution lines and roll-out smart meters to increase the use of renewable energy, the EIB announced in a press release.

Last year, the EIB allocated 2.8 billion euros for private and public investment across the country.

“We feel very confident that we will return to a very robust growth path. We are very happy that you will be faithful partners in this path towards financing our new growth model,” Prime Minister Kyriakos Mitsotakis said while welcoming EIB President Werner Hoyer, according to national broadcaster ERT.

The EIB will play a significant part in the implementation of Greece’s national Recovery and Resilience Plan approved by the European Commission last week, the Greek leader noted.

“We are now on your side when it comes to bring life into this unique package that the European Union has wrapped, and we are happy to be part of it,” Hoyer said.

[Xinhua]