HELLENIC DEVELOPMENT BANK LOAN FOR SMES MIDCAPS

Promoter – Financial Intermediary

HELLENIC DEVELOPMENT BANK SA

Location

• Greece

Description

A loan to the Hellenic Republic whose proceeds will be invested in financial instruments set up by the Hellenic Development Bank with the aim to support small and medium-sized enterprises (SMEs) and mid-caps' liquidity needs as a response to the COVID-19 crisis.

Additionality and Impact

The COVID-19 impact will be particularly difficult to bear for SMEs and Mid-Caps located in cohesion regions in Greece with information asymmetries and screening costs being further exacerbated, thus amplifying the crisis and feeding the negative spiral in the real economy. To this effect the proposed operation will facilitate access to SMEs and Midcaps financing with significant transfer of financial advantage whereas, by providing the necessary liquidity, it is expected to contribute to preservation of jobs, which otherwise might be lost. EIB contribution is mainly attributed to the relatively high Financial Value Added, as well as to the additional co-financing to be originated by local banks, thus crowding in the Greek financial sector. The EIB contribution is also expected to be significant in the context of assisting the Hellenic Development Bank to set-up the instrument(s) and accelerate the implementation of this operation.

Objectives

Financing of working capital loans to SMEs and mid-caps in order to face the lockdown consequences caused by the COVID-19 outbreak.

Comments

This operation is subject to approval by the EIB's governing bodies.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 400 million

Total cost (Approximate amount)

not applicable

Environmental aspects

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Status

Signed - 22/06/2021