The European Investment Fund (EIF) has signed four agreements with Alpha Bank and Piraeus Bank in Greece which will provide EUR 420 million to over 2,000 small and mediumsized enterprises (SMEs) across the country. These agreements were made possible by the support of the European Fund for Strategic Investments (EFSI). The EFSI is the central pillar of the European Commission’s Investment Plan for Europe, the so-called “Juncker Plan”. The Junker Plan is already expected to mobilise over EUR 3 billion in investments in Greece and EUR 183.5 billion across Europe.
Today’s agreements will allow both banks to provide loans with substantially reduced collateral requirements under the European Commission’s COSME programme. The banks will also target innovative companies in Greece under the European Commission’s InnovFin – EU Finance for Innovators initiative, backed by the EU’s Research and Innovation programme Horizon 2020.
The signing ceremony took place during the conference on financial instruments for the support and growth of SMEs in Greece, organised by the European Commission and the Greek Ministry of Economy & Development in Athens, featuring high-level representatives from the Greek banking and public sector.
European Commissioner, Dimitris Avramopoulos, responsible for Migration, Home Affairs and Citizenship, said: “Facilitating access to finance for small and medium-sized businesses is a crucial element of the European Commission’s strategy to promote jobs and growth in Greece and across Europe. Greek small and medium-sized enterprises are already benefiting from loans made possible by the Juncker Plan. Today’s agreements will allow some 2,000 more SMEs to finance expansion, innovation and job-creation which will, in turn, contribute to securing Greece’s economic recovery.”
Speaking at the signing event in Athens, EIF Chief Executive, Pier Luigi Gilibert, commented: “Today’s EFSI signatures with Alpha Bank and Piraeus Bank re-confirm EIF’s commitment to Greek businesses. In less than a year, EFSI will allow EIF to support a total portfolio of over EUR 1 billion of loans to Greek businesses. Access to finance continues to be a pressing issue for many businesses and the four COSME and InnovFin guarantees will unlock critical investment opportunities for Greek SMEs.”
George C. Aronis, Deputy CEO of Alpha Bank, stated: “The agreements signed constitute a significant step towards the recovery of Greek entrepreneurship and economy, while further enhancing the long-standing and constructive cooperation between Alpha Bank and the European Investment Fund. Through these agreements, implemented under the European Commission’s COSME and InnovFin programmes, with the support of the European Fund for Strategic Investment, Alpha Bank will provide financing to sustainable and innovative SMEs, with favorable financial terms and reduced collateral, in order to help them meet their operational needs, strengthen their competitiveness and achieve their growth objectives”.
Ilias Milis, Pireaus Bank Senior General Manager, said: “Piraeus Bank, the biggest bank in Greece has set as a primary and strategic goal, the holistic support of Greek entrepreneurship that is considered as the principal force for the reemergence and growth ofthe Greek economy. Piraeus Bank is expanding its already established cooperation with the European Investment Bank Group, by signing 2 new agreements of a total budget of EUR 270million. These guarantee facilities, COSME and InnovFin, will enhance access to finance for more than 1.000 SMEs and small Midcaps that are active in all business sectors. In particular, through COSME guarantee facility, Piraeus Bank is planning to allocate EUR 170 million to Greek SMEs that represent the backbone of Greek economy, by financing them under more favorable terms. Additionally, EUR 100 million will be dispersed through InnovFin guarantee facility, to innovative SMEs and small Midcaps that invest in research and development and the production of innovative products or services”.
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