Greece and Germany were expected to sign a memorandum of understanding with regard to the development of a Greek investment fund for growth, Germany’s Handelsblatt reported on Friday.
The MoU was expected to be signed by German Chancellor Angela Merkel and Greek Prime Minister Antonis Samaras during the former’s visit to Athens on Friday.
According to the report the investment fund, whose structure would echo Germany’s state-owned KfW lender, would aid the liquidity of small and medium-sized businesses through low interest rate loans. The report further noted that the two countries would each contribute 100 million euros to the new venture.
Although plans for the investment fund have been in the works for a while — with contributors also expected to include the European Union, the European Investment Bank and France — Germany had decided to act unilaterally, the newspaper reported. Nevertheless, the funds expected to be transferred from Germany through KfW must be approved by the German state budget for 2014, scheduled for debate at the Bundestag in July.