The EIB announced on Wednesday a new credit line for Greek banks and their subsidiaries to support lease finance for domestic companies and businesses. The initiative come after a previous EIB financing program for Greek SMEs, worth one billion euros.
A press release by the European Investment Bank reads:
"Companies across Greece seeking to lease equipment and premises will benefit from a new EUR 400 million leasing finance initiative.
The European Investment Bank announced today new support to expand leasing finance for equipment and real estate, to be provided by the leasing subsidiaries of four leading Greek banks.
“Ensuring that companies can access finance is crucial for economic growth. Access to leasing finance is key for companies involved in production, agriculture, construction and other economic sectors and the European Investment Bank is pleased to strengthen our successful cooperation with leading banks in Greece to the leasing sector. This exciting new EUR 400 million initiative will enable companies across the country to build on their strengths and access new machines and better premises. The combined expertise and local knowledge of the dedicated leasing arms of Alpha Bank, Eurobank, National Bank of Greece and Piraeus Bank will help firms across the country to expand turnover and create jobs in the future.” said Jonathan Taylor, European Investment Bank Vice President responsible for lending operations in Greece.
Tackling leasing finance challenges in Greece
The new scheme will back leasing financing by Alpha Leasing, Ethniki Leasing, Eurobank Leasing and Piraeus Leasing to SMEs and MidCaps. Each partner will provide leasing finance that reflects their own business focus and catering for specific financing needs.
The initiative, guaranteed by the Hellenic Republic, will back equipment leasing and real estate leasing finance to SMEs and MidCaps across all eligible sectors.
Incentive for youth employment
Reflecting the importance of ensuring opportunities for young people, the initiative will provide additional incentives for companies supporting youth employment.
Building on success of EUR 1 billion finance programme for SMEs and MidCaps
The first dedicated leasing finance initiative in Greece by the European Investment Bank follows the successful implementation of a EUR 1 billion SME financing programme through leading Greek banks within 18 months.
“The EIB is pleased to confirm the successful roll-out of a EUR 1 billion SME financing programme that reflects a clear appetite for investment by companies across all sectors.” added Jonathan Taylor, European Investment Bank Vice President.
The intermediated lending programme launched in December 2016 and implemented in co-operation with Alpha Bank, Eurobank, Pancretan Cooperative Bank and Piraeus Bank, has already enabled more than 660 companies to expand activities and enter new business markets. Ensuring improved access to finance by firms employing 69,000 people is also helping to create new jobs.
The EUR 1 billion SME financing programme has supported investment in manufacturing, wholesale and retail trade, tourism and agri-business. Other sectors benefiting from lending under the initiative are agriculture, fishing, education, health, transport, energy, communications and construction.
Reflecting the significant demand by Greek companies for financing, the scheme was expanded by additional EUR 50 million, enabling financing under the facility to total EUR 1.05 billion.
Additional SME lending under the Investment Plan for Europe
The Investment Plan for Europe or Juncker Plan is enabling the EIB Group to strengthen support for private sector investment in Greece.
In the last 18 months additional European Investment Bank and European Investment Fund financing for SMEs and MidCaps in Greece totalling EUR 900 million has been channelled through credit lines guaranteed by the European Fund for Strategic Investments and managed by Alpha Bank, National Bank of Greece and Piraeus Bank.
Overall EIB engagement in Greece
In 2017, financing for infrastructure and private sector investment in Greece by the EIB Group, the European Investment Bank and European Investment Fund, totalled EUR 2.5 billion.
This represented a new record in the number of individual projects directly financed across the country".
