They are unlocking 6.5 billion euros for companies affected by the pandemic

By Leonidas Stergiou

Businesses and entrepreneurs throughout Greece affected by the COVID-19 pandemic will be able to benefit from access to a funding amount – a landmark of 6.5 billion euros as a result of cooperation between the country’s systemic banks and its Group European Investment Bank (EIB) under the new Pan-European Guarantee Fund.

Under the Pan-European Guarantee Fund program, guarantees totaling € 2.7 billion provided by the EIB Group to Alpha Bank, National Bank of Greece, Eurobank and Piraeus Bank will help companies with sustainable business plans recover from challenges of the COVID pandemic; these are the first guarantee agreements implemented by the EIB in Greece and the first transactions through banks aimed at enhancing the access of large companies to financing, thus expanding the EIB’s support to the real economy of the country.

The initiative also includes the first synthetic securitization in Greece, in which the EIB Group participates, thus contributing to the further strengthening of the Greek securitization market.

The Pan-European Guarantee Fund was set up in late 2020 by the EIB Group with contributions from 22 EU Member States to improve support for companies facing business challenges due to the COVID pandemic. Using almost € 25 billion in guarantees, the Pan-European Guarantee Fund provides the EIB and the European Investment Fund (EIF) with the ability to provide fast loans, guarantees, asset-backed securities, equity and more. financial instruments to companies.

The goal of the Pan-European Guarantee Fund is to ensure that companies with sustainable business plans continue to have access to liquidity to overcome any difficulties arising from the COVID-19 pandemic and that healthy businesses can receive the support they need to preserve jobs and grow in a sustainable way.

Earlier today in Athens, the Minister of Finance Chr. Staikouras, EIB Vice President C. Thomsen and representatives of the four systemic banks underlined the significant positive impact on the Greek economy of cooperation under the new Pan-European Guarantee Fund.

Funding record in 2021

Last year, investments in new businesses and corporate innovation, urban regeneration, energy transition and the digitization of public services received the largest financial contribution from the European Investment Bank Group in Greece. In 2021, the support of the European Investment Bank (EIB) and the European Investment Fund (EIF) for private and public investment with a large impact amounted to a total of 4.85 billion euros, the largest amount in the 59 years of activity in the country. EIB Group financing in Greece represented 2.7% of GDP, the largest share in any country in the world.

Greece was also a top beneficiary of the Pan-European Guarantee Fund, set up by the European Investment Bank Group and EU Member States within weeks of the pandemic to support thousands of companies facing difficulties due to the COVID pandemic challenges. Therefore, access to finance for companies throughout Greece will be enhanced with guarantees amounting to 2.7 billion euros, which will be provided through the Pan-European Guarantee Fund.

Christos Staikouras

“The Pan-European Guarantee Fund secures new investments from companies throughout Greece and supports business activities in areas affected by the COVID-19 pandemic. The unprecedented technical and financial cooperation between the European Investment Bank Group and the systemic Greek banks will accelerate Greece is the fifth largest recipient of the European Guarantee Fund, in absolute terms, and the third, in relative terms, among all EU Member States. “thanks to the intensive and efficient effort of Greek and European partners in recent months,” said Christos Staikouras, Minister of Finance and Governor of the EIB.

Together with Alpha Bank, the National Bank of Greece, Eurobank and Piraeus Bank, the EIB Group ensures that Greek companies in the tourism, services and manufacturing sectors – sectors hardest hit by the catastrophic COVID pandemic -19 – can continue to invest, innovate and create jobs The Pan-European Guarantee Fund is a key pillar of Europe’s response to the pandemic, and excellent cooperation with Greek partners in recent months will ensure that companies throughout Greece “from Corfu to Crete, they will be able to meet the challenges of the COVID pandemic and invest in a stronger future,” added Christian Kettel Thomsen, EIB Vice President.

Alpha Bank – Vassilis Psaltis

Alpha Bank CEO Vassilis Psaltis said: “Through the strategic relationship that Alpha Bank has developed with the European Investment Bank Group, billions of euros have been channeled into the economy for decades. Today, EIB guarantees, through European Guarantee Fund, together with the strong capital of Greek banks, form a financial security network for the sectors affected by the pandemic, but our ambition is not limited to managing the current situation. Our experience and access to the business world, RRF resources and – of course – our strategic relationship with the EIB, so we at Alpha Bank are assisting the development plans of Greek companies and the transition of our economy to a new one, digital, green and, ultimately, a sustainable future “.

ETE – Vassilis Karamouzis

Vassilis Karamouzis, General Manager of Corporate and Investment Banking of the National Bank of Greece, said: “The European Investment Bank Group is an important partner for the National Bank in terms of the various financial products available to Greek companies, which include loans to small and medium-sized enterprises, guarantee instruments and innovative financial instruments utilizing Structural and National resources In this context, over the last two years (2020-21), Ethniki’s cooperation with the EIB Group has further strengthened, as Ethniki has unlock through various programs over 3 billion euros to support the recovery of healthy Greek companies from the COVID-19 pandemic and their further development “.

Eurobank – Fokion Karavias

The CEO of Eurobank Fokion Karavias said: “We have been partners with the EIB Group for 15 years and we work together for our common goal – to finance Greek companies and support the development of the Greek economy. Especially during the pandemic, the programs The EIB and the EIF, both financing and guaranteeing, were directed to the economy through the banking system, and their contribution was crucial in supporting the pandemic and maintaining businesses and jobs at a critical juncture. In this context, we look forward to continuing and expanding our cooperation in the growth phase of the economy, with particular emphasis on supporting small and medium-sized enterprises to take advantage of and at the same time further strengthen the strong growth rates envisaged in Greece. the next years”.

Piraeus Bank – Christos Megalou

Piraeus Bank CEO Christos Megalou said: “In recent years we have been cooperating with the EIB Group in financing actions exceeding 3 billion euros, supporting Greek companies in the implementation of their investment plans. In the framework of the new initiatives of the Group EIB, three new programs are to be added through the Pan-European Guarantee Fund, for the provision of loans to both small and medium-sized enterprises, and with the provision of guarantees of more than half a billion euros, Piraeus Bank will channel these enterprises in 2022 more than 1 billion euros in financing both for investment purposes and to support their liquidity through working capital “.

EIB Group

Since December 2020, the EIB Group has approved a resource contribution of € 23.2 billion from the Pan-European Guarantee Fund to 401 individual transactions in all 22 participating countries. Greece, with a share of 1.7 billion euros so far, is ranked fifth, in absolute terms, among the eligible funds of the Pan-European Guarantee Fund and in third place, in proportion to the country’s contribution to the Fund. In addition, the transactions include a guarantee on the first part-loss (first-loss piece) of synthetic securitization of SME loans by Eurobank. This is one of the first transactions of its kind within the framework of the Pan-European Guarantee Fund, putting Eurobank and Greece at the center of the management of innovative financial instruments.

The transactions of the Pan-European Guarantee Fund follow and act in addition to previous transactions carried out by the EIB Group in Greece in response to the crisis caused by the COVID-19 pandemic.

The European Investment Bank (EIB) is the European Union (EU) body that provides long-term financing and belongs to the EU Member States. It provides long-term credit to sustainable investment, with the ultimate aim of helping to achieve EU policy objectives.

Read also: