Athens seeks new subsidy deal with EIB

Athens seeks new subsidy deal with EIB

The government is in search of cash injections so it can implement plans supported by the investment incentives legislation.

Although Greek enterprises are interested, they often lack the necessary capital, while accessing bank financing remains extremely difficult. At the same time, the Economy Ministry is trying to wrap up loose ends from previous subsidy programs and next week will pay off dues for investment plans from the last decade.

Kathimerini understands that the government is in advanced negotiations with the European Investment Bank (EIB) for the latter to support the provisions of the investment incentives law.

There are two options on the table at the moment: direct EIB funding to the state with resources aimed at investment incentives law subsidies, and the indirect financing of projects by the EIB, for instance through the supply of collateral for enterprises which have earned access to the subsidies of the law.

Market and civil service officials who are familiar with the negotiations say they will be completed in about a month, when the amount and method agreed in the new deal between Athens and the EIB will be revealed.

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