corporate_banner_en

Guarantee Fund for Greek SMEs

Guarantee Fund for Greek SMEs

What is the Guarantee Fund for Greek SMEs?

The Guarantee Fund for Greek SMEs is a joint initiative between the Hellenic Republic, Ministry of Development and Competitiveness, and the EIB with the objective of supporting the real economy and counteracting the impact of the crisis. The Fund is financed by the European Regional Development Fund in the context of the National Strategic Reference Framework for Greece[1].

The Guarantee Fund aims to maximise the use of part of the European Union (EU) Structural Funds for Greece to finance small and medium-sized enterprises (SMEs) as well as midcaps through a revolving mechanism.

How does it work?

By providing a designated credit protection in the form of guarantee to the EIB, the Fund facilitates the indirect financing of eligible Greek SMEs and midcaps through a network of financial intermediaries based in Greece.

Five Greek banks have joined forces with the EIB, namely Alpha Bank, Eurobank, National Bank of Greece, Piraeus Bank and Pancretan Cooperative Bank in an effort to provide liquidity to Greek SMEs and midcaps.

This innovative initiative also provides a financing window for the promotion of jobs for young people, under the EIB initiative Skills and Jobs – Investing for Youth. Under the Guarantee Fund for Greek SMEs, a number of SMEs supporting youth employment have already benefitted from preferential rates to meet their working capital requirements as well as investment needs.

What are the main benefits of the initiative?

  • Long tenors which can ensure a long-term lending strategy
  • Beneficial pricing based on the promotional nature of the EIB

Structure of the Guarantee Fund for Greek SMEs

Structure of the Guarantee Fund for Greek SMEs

Who is eligible?

The Guarantee Fund exclusively targets:

  • small and medium-sized enterprises with fewer than 250 employees
  • midcaps, namely enterprises with:
    • a number of employees ranging from 250 to 3 000 (full-time equivalent) and
    • a sub-project cost of up to EUR 50 million

In both cases, the company must operate in Greece. If the case of an investment in fixed assets, the location of the investment must be in Greece.

Programme characteristics

Size of each project: up to EUR 50m

Loan size financed by EIB: up to EUR 25m

Maturity:

 From 3 to 8 years for investments with a fixed repayment schedule

 From 2 to 8 years for working capital with a fixed repayment schedule

Pricing: Reflects the promotional nature of the EIB and the funding advantage based on its excellent rating

Purpose:

 Financing of investments

 Medium and long term working capital needs



1 Financed by the following Operational Programmes: Macedonia - Thrace; Crete and Aegean islands; Thessaly – Mainland Greece – Epirus; Western Greece - Peloponnese – Ionian islands; Attica; Competitiveness and Entrepreneurship.



 Print