The European Investment Bank has formally agreed EUR 400 million support to strengthen business financing across Greece.

“This is an important moment for the Greek economy and the Hellenic Development Bank. The European Investment Bank is showing faith in the prospects of the economy and offering tangible support for its dynamic restart. By leveraging public funds, the HDB will create new financing tools that will make it easier for yet more SMEs and larger enterprises to access funding that will drive their growth. As a result, the EUR 400 million from the loan agreement will multiply by up to three times thanks to a harmonious and mutually beneficial cooperation with the banking system. This will finance the real economy and Greek entrepreneurship. We hope that the success of these programmes will lead to an even closer cooperation with the EIB and the European Investment Fund,” said Athina Chatzipetrou President and Chief Executive of the Hellenic Development Bank.

“Ensuring that business across Greece can access financing, innovate and create jobs, and withstand challenges enhanced by COVID-19, is a shared goal of the Hellenic Development Bank and the European Investment Bank. Today I am pleased to confirm EUR 400 million EIB backing for the Hellenic Development Bank and further enhance our technical cooperation. It is an honour to join Ministers and HDB colleagues at the inauguration of their new headquarters and to demonstrate the EIB’s support in person.” said Werner Hoyer, President of the European Investment Bank.

During a visit to the new offices of the Hellenic Development Bank in Athens earlier today, the first EUR 200 million tranche of the EIB loan was signed by Minister of Finance and EIB Governor, Christos Staikouras, the Deputy Minister of Development and Investment, Yiannis Tsakiris and the EIB Vice President Christian Kettel Thomsen, alongside Athina Chatzipetrou President and Chief Executive of the Hellenic Development Bank.

Development and Investment Minister Adonis Georgiadis, Deputy Development Minister Nikos Papathanasis as well as Bank of Greece Governor Yannis Stournaras were also present at the event, in the European Investment Fund Alain Godard Chief Executive and the Head of the EIB Investment Team for Greece and Cyprus, Ioannis Kaltsas.

The new European Investment Bank backing will help Hellenic Development Bank (HDB) to scale up business financing and provide EUR 2 billion for investment by SME and Midcap companies across Greece.

Thirty percent of the loans will be granted to medium-sized companies while 70 percent to small and medium-sized enterprises in cooperation with HDB and through Greek banks who will provide additional financing.

The Hellenic Development Bank strengthen cooperation with both the European Investment Bank and the European Investment Fund to further enhance the impact financing provided to Greek businesses, creating more jobs and strengthening entrepreneurship.

The EIB works with national promotional banks across Europe and around the world, and seconded technical and financial experts to HDB during its creation.

The HDB is a key source of financing for Greek SMEs and banks, and able to assume business risk normally not taken by commercial banks.