EIB and Greece’s Major Banks Launch €700M Guarantee Programme to Support Mid-Caps

The programme was officially inaugurated on July 24, 2024, in Athens by EIB Vice-President Yannis Tsakiris and representatives from the four participating banks.

The European Investment Bank (EIB) has announced a significant €700 million guarantee programme in collaboration with Greece’s four systemic banks to bolster mid-cap businesses across the country. The agreement will see the EIB cover 50% of potential losses on a loan-by-loan basis for portfolios amounting to €1.4 billion in new financing, provided by Alpha Bank, National Bank of Greece, Eurobank, and Piraeus.

Programme Overview:

Objective and Scope: The new programme is designed to offer favourable loan terms to medium-sized businesses with 250 to 3,000 employees. The aim is to support these businesses in financing their working capital needs and investments, which are crucial for their sustainability and competitiveness.

Financial Impact: The initiative, part of the EIB’s EU-wide Linked Risk-Sharing (LRS) programme, is expected to mobilise nearly €2 billion in fresh financing for eligible mid-caps in Greece, factoring in both EIB and additional third-party resources.

Inauguration and Statements:

The programme was officially inaugurated on July 24, 2024, in Athens by EIB Vice-President Yannis Tsakiris and representatives from the four participating banks. The event underscored the partnership’s potential to significantly impact the Greek economy by enhancing business competitiveness, fostering job security, and supporting job creation.

Yannis Tsakiris, EIB Vice-President: “Our consistent efforts with Greece's systemic banks aim to support the real economy through financing and guarantee agreements that enhance credit access and offer more favourable terms for medium-sized businesses. Given the current high interest rates, access to liquidity is vital for strengthening Greek businesses’ competitiveness.”

Yannis Emiris, General Manager of Wholesale Banking, Alpha Bank: “Our leadership in the Greek business landscape obliges us to help clients improve sustainability and resilience. This new partnership with the EIB enhances our ability to support Greek mid-sized enterprises with favourable financing terms, contributing to their growth and job creation.”

Vassilis Karamouzis, General Manager of Corporate and Investment Banking, National Bank of Greece (NBG): “NBG's ongoing support for medium-sized enterprises is reflected in our expanded cooperation with the EIB, allowing us to offer favourable financing terms to more companies throughout Greece.”

Panagiotis Lymperopoulos, General Manager, Eurobank: “Eurobank’s commitment to supporting Greek entrepreneurship is reinforced through this new guarantee programme, which aids in modernising the Greek production model and fostering sustainable, long-term growth.”

Theodore Tzouros, Executive General Manager, Piraeus Bank: “Piraeus Bank’s collaboration with the EIB has been instrumental in providing funding tools for Greek businesses. We are proud to participate in the EIB LRS programme, which will support the real economy and enhance lending capacity.”

Significance of Guarantees:

Guarantees play a crucial role in the lending process by covering potential credit losses and providing capital relief on guaranteed assets. This, in turn, stimulates risk appetite and creates additional lending capacity, benefiting Greek businesses by overcoming investment barriers and addressing market failures.

Future Outlook:

This new guarantee programme reinforces the EIB’s role as a key supporter of businesses of all sizes in Greece, following the successful implementation of previous guarantees under the European Guarantee Fund (EGF) in 2022. The EIB remains committed to leveraging modern financial instruments and partnerships with the banking sector to address investment gaps and support sustainable business growth.

The €700 million guarantee programme represents a significant step towards enhancing the financial stability and growth prospects of mid-cap businesses in Greece. By facilitating access to favourable financing terms, the EIB and Greece’s systemic banks are jointly contributing to a more resilient and competitive Greek economy.