FINANCE

Credit to Covid-stricken companies via EIB

Credit to Covid-stricken companies via EIB

Businesses and entrepreneurs across Greece that have been impacted by the Covid-19 pandemic are to benefit from access to a landmark 6.5 billion euros in financing as a result of the partnership between the country’s systemic banks and the European Investment Bank (EIB) Group under the new European Guarantee Fund (EGF).

Under the EGF program, a total of €2.7 billion in guarantees provided to Alpha Bank, National Bank, Eurobank and Piraeus Bank by the EIB Group will help companies across the country with sustainable business plans to recover from Covid-related challenges, in what are the first ever guarantee operations signed by the EIB in Greece. They are also the first ever EIB intermediated operations to strengthen access to finance by large corporates, broadening the EIB’s support for the country’s real economy.

The initiative further includes the first synthetic securitization executed by the EIB Group in Greece and contributes to further strengthening the Greek securitization market. 

Earlier on Tuesday, Finance Minister Christos Staikouras, EIB Vice President Christian Kettel Thomsen, and the representatives of the four banks highlighted the impact of the new EGF cooperation on the Greek economy.

“The European Guarantee Fund is delivering new investment by companies across Greece and supporting business activities in sectors challenged by Covid-19. The unprecedented technical and financial cooperation between the European Investment Bank Group and leading Greek banks will further accelerate economic recovery and sustainable growth in Greece and support employment. Greece is the fifth largest absolute recipient of the EGF and the third largest relative beneficiary amongst all participating EU member-states thanks to the hard and efficient work of Greek and European partners in recent months,” said Staikouras. 

“Together with Alpha Bank, Eurobank, National Bank of Greece and Piraeus Bank, the EIB Group is making sure that Greek companies in tourism, services and manufacturing – sectors most impacted by the devastating Covid-19 pandemic – can continue to invest, innovate and create jobs. The excellent cooperation with Greek partners in recent months will ensure that companies across Greece tackle the challenges of Covid and invest in a stronger future,” added Thomsen.