The European Investment Bank entered today in a EUR 250 million agreement with the National Bank of Greece in favour of small and medium sized enterprises in Greece.
The cooperation between the two banks in favour of Greek, small companies was celebrated at a signature ceremony at NBG’s Headquarters in Athens today. The contracts were signed by EIB Vice-President Plutarchos Sakellaris and National Bank of Greece Chairman, Mr Takis Arapoglou.
At the signing ceremony, EIB Vice-President Plutarchos Sakellaris said: "We provide this new financing facility to benefit smaller companies in Greece, in our capacity as the European Union's bank. In order to counteract the impact of the crisis on the Greek and European economies, we are increasing significantly our lending. Loans for small and medium-size companies form an integral and important part of our extended offering. This underlines once again the key role that enterpreneurial activity plays in strengthening the structural competitiveness of the European economy. There is no doubt that it acts as a vital link in the innovation chain, creating employment and raising the level of job qualifications. We are pleased to have the National Bank of Greece as a partner in this effort. Our action will be amplified by the synergies of this new partnership".
Τhe Chairman of the National Bank of Greece Takis Arapoglou, underlined that “the EUR 250 million agreement with EIB is an integral part of the Bank’s strategy to support and strengthen SME’s in our country. The total benefit accruing to SME’s for the financing of their investment projects totals EUR 500 million at a very favorable cost.”
The National Bank of Greece, the country’s largest financial group, was a strong and long-standing EIB partner for SME support in Greece under its former subsidiary the National Investment Bank for Industrial Development (ETEBA), with which a total of fourteen EIB facilities were successfully concluded during the period 1985 to 1992. NBG has a strong presence throughout the country and beyond Greek borders, with leading market shares in most of its main business areas, including corporate lending.
Small businesses play a key role in the Greek economy and this new EIB facility will be used by NBG to finance tangible and intangible investments, as well as working capital needs of Greek enterprises with fewer than 250 employees in the fields of industry, agro-industry, services and tourism. EIB’s SME support in Greece marks a milestone as far as volume and banking partners are concerned. In the last eight months, the EIB has implemented in Greece new facilities exceeding EUR 1.1 billion and works in partnership with eight major, Greek banks.
The EIB has always supported SMEs. This is, however, a "new formula" of EIB support under the extraordinary plan deployed by the EIB for European SMEs in response to the current financial and economic crisis. This formula facilitates SMEs in gaining access to credit by increasing flexibility, simplifying procedures, and - in return - requiring greater transparency from partner banks, which must clearly inform their customers of the way in which the EIB funds improve their lending terms; longer maturities, more flexible disbursement conditions and lower interest rates.