- The Greek government will set up a development bank to fund infrastructure projects, start ups, small businesses and export oriented companies, the government’s economic policy council announced on Friday.
The Hellenic Development Bank will be a state lender that will complement commercial banks to help fund growth and regional projects.
The bank will seek the participation of other state entities with funding capacity to take part in its share capital and collaborate with international funding institutions.
“The goal is to endow the bank with the necessary funding and assets so that it can perform its role,” the council said in a statement. “Its founding will fill a vacuum in the country’s funding gap.”
The Greek economy, battered by the country’s debt crisis, is struggling to recover after a multi-year deep recession that affected its systemic banks’ abilities to fund new and existing businesses.
- Other EU development banks have been providing financing for investments. The European Bank for Reconstruction and Development (EBRD) will be investing in Greece up until the end of 2020 and expects its financing to reach the 2 billion euro mark by 2018.
In June, the European Investment Bank (EIB) activated 400 million euros of financing to help small and medium-sized Greek companies in their exporting activities, a move which has barely affected Greek businesses’ dire conditions.