Release date: 28 October 2021
Promoter – Financial Intermediary
NATIONAL BANK OF GREECE SALocation
Description
Risk-sharing instrument deployed under the European Guarantee Fund (EGF) for the support of mid-caps and large corporates in Greece that are active in sectors that are in line with the EIB's long-term mission (innovation, environment and indirect small and medium-sized enterprise (SME) support) and have been affected by the COVID-19 pandemic.
Additionality and Impact
The proposed operation consists of a guarantee in favour of NBG covering 50% of the loan-by-loan losses that may incur in a portfolio of financings to eligible MidCaps and large corporates in Greece. By addressing the underlying market failure in access to finance faced by companies due to information asymmetries and higher screening costs for smaller investments, which has been exacerbated due to the impact of COVID-19, the operation is fully in line with EU, the Bank's, as well as the Hellenic Republic's strategic objective to support uninterrupted access to finance and liquidity for enterprises. The guarantee will offer credit loss protection and capital relief to NBG on the portfolio to be covered. This would allow for the creation of additional headroom in the bank's balance sheet and increase in its credit risk appetite, which would be reflected in the benefits passed to final beneficiaries and which would take the form of higher volumes of financing, access to finance for clients that in the absence of the guarantee would not be possible, reduced pricing and/or lower collateral requirements.
Objectives
Improve access to finance for companies in Greece and, namely, at beneficial terms, through the provision of capital relief and credit loss protection to the National Bank of Greece (NBG) on a portfolio of new eligible transactions.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 150 million
Total cost (Approximate amount)
EUR 490 million
Environmental aspects
Final beneficiaries will be required to comply with the applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be required to comply with the applicable national and EU legislation, as appropriate.
Status
Signed - 22/12/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).