Eurobank extended last year’s agreement with the European Investment Fund (EIF) to provide financing for small businesses, doubling the amount of available funding to 260 million euros, the Greek bank announced on Wednesday.
Small businesses form the backbone of Greece’s economy, which is gradually recovering from a multi-year deep recession. It was announced last week that, Eurobank’s move follows a €700 million deal by Piraeus Bank, EIB, EBRD and EIF.
The credit facility is part of the European Union’s so-called COSME programme that seeks to improve the competitiveness of small-size firms. COSME offers loan guarantees to banks to help them increase lending with reduced collateral requirements.
The financing can cover companies’ needs for working capital and investments in fixed assets. 59.9% of the EIF is owned by the European Investment Bank (EIB).