Last year, investments in new businesses and corporate innovation, urban regeneration, energy transition and the digitalisation of public services received the largest ever financial contribution from the European Investment Bank Group in Greece.
Greece the largest per capita beneficiary of EIB and EIF financing
In 2021, support from the European Investment Bank (EIB) and the European Investment Fund (EIF) to high-impact private and public investments totalled 4.85 billion dollars, the largest amount in 59 years of activity in the country. EIB Group financing in Greece accounted for 2.7% of GDP, the largest participation in any country around the world.
Greece has also been a leading beneficiary of the Pan-European Guarantee Fund, which was set up by the European Investment Bank Group and EU member states within weeks of the start of the pandemic to support thousands of businesses that have faced difficulties due to the COVID pandemic-related challenges. Therefore, access to business finance across Greece will be enhanced with guarantees amounting to 2.7 billion euros, which will be provided through the Pan-European Guarantee Fund.
The significant positive impact of the financing of the European Investment Bank Group was underlined by Christos Staikouras, Minister for Finance of the Hellenic Republic and Governor of the European Investment Bank, Christian Kettel Thomsen, Vice-President of the European Investment Bank, responsible for Greece, and representatives of the four systemic banks.
Greek banks and the EIB Group “unlock” 6.5 billion euros in liquidity
Businesses across Greece that have been affected by the pandemic will therefore be able to benefit from access to a landmark funding of 6.5 billion euros as a result of the cooperation between the country’s systemic banks and the European Investment Bank (EIB) Group in the framework of the new Pan-European Guarantee Fund.
Under the Pan-European Guarantee Fund programme, guarantees totalling 2.7 billion euros provided by the EIB Group to Alpha Bank, National Bank of Greece, Eurobank and Piraeus Bank will help companies with viable business plans to recover from the challenges of the pandemic.These are the first guarantee agreements implemented by the EIB in Greece and the first transactions through banks aimed at enhancing access to finance for large companies, thus broadening the scope of the EIB’s support to the country’s real economy.
The initiative also includes the first synthetic securitisation in Greece, in which the EIB Group participates, thus contributing to the further strengthening of the Greek securitisation market.
The European Investment Bank and the European Investment Fund strengthen Greece
Last year the European Investment Bank approved financing amounting to 2.9 billion euros for new public and private sector activities to support new investments across Greece.
The European Investment Fund’s contribution also hit a record high, totalling 1.96 billion euros to support investments by companies across the country. The EIF has supported the provision of guarantees to Greek national and regional banks to improve access to finance for companies affected by the pandemic through the European Guarantee and Inclusive Finance Fund.
The EIF also supported 5 equity financing transactions, including the first angel venture capital to be used for re-flows, building on the success of the JEREMIE programme.
The record participation, amounting to 4.85 billion euros, of the European Bank Group in 2021 represents a significant increase compared to the previous record of 2.8 billion euros in 2020.
Climate action and energy transition investments across Greece
In 2021, the EIB supported groundbreaking investments to improve flood protection and transform civil protection across the country. The EIB also supported large-scale investment by DEI ( Public Power Corporation) to exploit energy from renewable sources and boost electricity distribution. For the future, the EIB has a long line of climate action projects that are currently under preparation and are expected to be confirmed in the coming months.
Exchange of know-how through collaborations with partners in Greece
Last year, the EIB Group’s Investment Team for Greece offered expertise in 28 projects in Greece. These include supporting the study and implementation of the energy efficiency program “ELECTRA”, accelerating municipal investments and increasing the development of the European Social Fund throughout Greece.
The EIB Group’s advisory teams collaborated on climate action with the Hellenic Development Bank and exchanged experiences to improve the use of the European Agricultural Fund in the country.