Private companies in Greece with international orientation will benefit from a new commercial financing cooperation of 350 million euros, between the European Investment Bank (EIB) and Citi, signed in Athens, earlier today. This signature is part of the new, third, extension of the EIB’s Trade Finance Facility (TFF) program, totaling € 550 million.
According to a relevant announcement, Greece is the only country in Europe that benefits from this initiative. The EIB Commercial Financing Facility (TFF) program, in which Citi has been a leader since its inception in 2013, was developed specifically for Greece to address a financial gap in the market, which continues to restrict the international business activities of Greek companies. In particular, the program offers commercial guarantees that cover foreign exchange, political and credit risks.
Following today’s agreement and in just a few weeks, private companies across the country will have access to a new pool of € 350 million in funding. Their use will be organized locally by Eurobank, Piraeus Bank and the National Bank of Greece. The financing will be guaranteed by the EIB and Citi, while other international banks are expected to follow up with the remaining amount for the current, third, cycle of the program.
The € 350 million commercial financing was signed at Citi Greece’s Athens offices by Emilios Kyriakou, CEO of Citi Greece and Ioannis Kaltsas, Head of the EIB Investment Team for Greece and Cyprus, in the presence of the Minister of Finance and its Governor EIB, Christou Staikoura.
“Today’s new agreement, which marks the third extension of the European Investment Bank’s Trade Finance Facility (TFF) program, will provide the necessary basis for Greek companies – especially small and medium-sized ones – to improve their access to international markets. allow private companies throughout Greece, with international activity, to benefit from a new € 350 million trade finance cooperation between the EIB and Citi. Piraeus and the National Bank of Greece will be actively involved in providing access to this new pool of financial resources throughout the country, and I am particularly pleased with the commitment of international and domestic banks to ensuring the extroversion, expansion and resilience of Greek businesses. in support of the country’s effort for the future “Strengthening healthy entrepreneurship and its growth opportunities,” said Mr. Staikouras.
“Export companies are an integral part of the Greek economy and expanded international trade is vital for economic growth. Commercial financing is essential for most international trade and the EIB is committed to working with international and Greek banking partners to overcome The new € 350 million partnership between Citi and the EIB builds on the success of previous trade finance cooperation and ensures that leading Greek companies, especially small and medium-sized companies, can “Today’s agreement demonstrates the clear commitment of international and local banks to ensure that Greek companies can expand their business opportunities and create jobs,” said Christian Kettel Thomsen. Vice President of the EIB for Greece.
“Citi is committed to promoting the growth and economic progress of Greece, uninterruptedly since 1964, having the longest presence in the country compared to any other international bank. The Trade Finance Initiative, signed today between of the EIB and Citi, certifies our position as a reliable partner of Greece that provides tangible solutions for the economy and our customers.This program facilitates the international trade activities of Greek banks and the local business ecosystem, contributing positively to its real economy country “, stressed Mr. Kyriakou.
Citi’s contribution has been a catalyst for all Greek commercial banks participating in the Commercial Financing Facility since its inception in 2013. The program has provided successful support for trade finance transactions totaling almost one billion euros between 2013 and 2021. The potential of Greek access to trade finance has helped both increase investment and create jobs in the country.
The vast majority of commercial transactions involve some form of credit, insurance or guarantee, and companies participating in international tenders usually require financial guarantees. The EIB Commercial Financing Facility has shown significant support to Greek banks, which are in the best position to understand local businesses and strengthen the provision of commercial financing services.
The new program is expected to be launched in a few weeks and companies seeking commercial financing, through the new extension of the EIB Commercial Financing Facility, can contact one of the Greek banking partners directly.
Last year, the European Investment Bank Group provided new financing of 4.85 billion euros – an amount that is a new record – for public and private investment in Greece.
Source: AMPE
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
