Greece: EIB praise for iconic 6.5m-euro Modiano Emporium urban renewal project in Thessaloniki
14 September 2022
EIB Vice President Christian Kettel Thomsen has praised the recent completion of the Modiano Emporium in Thessaloniki, a long-awaited urban renewal project which was made possible by financing from the EIB.
The famous landmark building has been radically renovated and restored at a total cost of 6.5 million euros to once again become a prime food market and shopping destination for the northern Greek city’s citizens, while the socio-economic benefits resulting from the project include stimulating the creation of new businesses, new local jobs, and urban regeneration.
The Modiano Emporium was officially visited on Friday, September 9 in the context of the Thessaloniki International Fair which runs from Sep 10-18 by Greece’s Minister of Development and Investments Adonis Georgiadis, the Deputy Minister of Development and Investments Yiannis Tsakiris, and the General Secretary of Public Investments and Infrastructure Dimitris Skalkos, accompanied by executives of the EIB’s Investment for Greece team, the National Bank of Greece and the FAIS GROUP.
“The EIB is delighted to support such a visionary project that sees an emblematic building which is a part of the fabric of the city’s culture and heritage restored to its former glory, and once again become a living, breathing landmark of Thessaloniki. The socio-economic benefits resulting from our collaboration with our Greek partners are multi-faceted, including stimulating the creation of new businesses, jobs and urban regeneration, all factors which are central to the EIB’s mission of supporting investments that will improve the daily lives of Greek citizens,” said Christian Kettel-Thomsen, EIB Vice President responsible for EIB operations in Greece.
Modiano gets its grandeur back
The restoration of the Modiano Emporium monument, which had remained closed and in disrepair since 2016, was financed through Greece’s Infrastructure Fund of Funds combining funds from the 2014-2020 Operational Programme “Competitiveness, Entrepreneurship and Innovation” with a loan from the EIB, with the EIB also acting as fund manager. The Infrastructure Fund of Funds was established at the end of 2017 with the aim of providing favourable financing terms to the private and public sector for the implementation of small and medium-sized projects, with a focus on the energy, environment and urban development sectors.
The total eligible budget of the project amounts to 6.5 million euros and was financed by 42% from the Infrastructure Fund, leveraging the remaining 58% with own and bank funds. The National Bank of Greece is the Intermediate Financial Organisation within the framework of the Infrastructure Fund of Funds, granting a co-financing loan from its own funds.
In the coming months, the city’s beloved arcade will be coming back to life filled with the colours and aromas of fresh Greek produce, artisanal products, traditional delights and gourmet delicacies, while at the same time cafés, restaurants, bars and other venues will vie for shoppers’ custom.
Last year new business investment and corporate innovation, urban renewal, energy transition and digitalisation of public services benefited from the European Investment Bank Group’s largest ever engagement Greece. In 2021 support for high-impact private and public investment by European Investment Bank and European Investment Fund totalled EUR 4.85 billion, the largest in 59 years of operations in the country.
The EIB Group today confirmed that a total of EUR 2.5 billion of new financing was signed in 2017 for public and private sector investment across in Greece. This marks the second largest annual financing in the country by Europe’s long-term lending institution in 55 years of Greek operations.
The EIB today confirmed involvement of four systemic Greek banks in a new EUR 650 million infrastructure investment programme. The EIB also outlined plans to build on recent support for EUR 3 billion business investment across Greece in partnership with local banks to increase the impact of private sector financing