EIB to channel 1 bln to local banks

EIB to channel 1 bln to local banks

The European Investment Bank (EIB) is set to announce an agreement for a cash injection of 1 billion euros to Greece’s four systemic banks that will be guaranteed by the Greek state, paving the way for a return to state-backed financing.

This development is expected to be made public over the course of the week, along with an announcement on the creation of an investment platform by a holding fund that will be managed by the European Investment Fund, the financing arm of the EIB for small and medium-sized enterprises (SMEs). The head of the EIB, Werner Hoyer, and European Commissioner for Regional Policy Corina Cretu are expected in Athens on Thursday to mark the announcement.

The 1-billion-euro injection, for Piraeus, Alpha, National and Eurobank, is part of liquidity the EIB has already approved for Greece. According to sources, the total amount of cash will exceed 2 billion euros, provided talks for concluding the second bailout review go smoothly and there are no disputes regarding the Greek state’s collateral, as has been the case in the past.

The EIB loans will be used to cover the lenders’ participation in new funding tools the Economy Ministry is promoting for SMEs.

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