The Greek Guarantee Fund (GGF), a monetary initiative that supplied assist to Greek SMEs and mid-caps, introduced its profitable completion after having enabled €600 million in financing to Greek firms.
The information was introduced by the The European Funding Financial institution (EIB) and the Hellenic Republic, the previous of which supplied the financing.
“The Greek Assure Fund is a exceptional instance of how progressive monetary instruments can ship actual influence when there’s sturdy alignment between nationwide priorities and European monetary experience. At a time of outstanding stress on the Greek financial system, this initiative ensured that tons of of companies may entry inexpensive financing and proceed to develop, innovate, and protect jobs,” mentioned EIB Vice-President Yannis Tsakiris.
Launched in 2014, the GGF aimed to reinforce entry to finance for Greek companies, stimulate job creation, and contribute to the restoration of the nationwide financial system. Over the course of its implementation, the GGF enabled EIB financing to greater than 800 SMEs and mid-caps throughout the nation.
The fund was established with the target of stimulating lending to Greek SMEs and mid-cap firms by offering low-interest financing via native accomplice banks. To encourage monetary establishments to lend extra readily, it additionally aimed to offset credit score danger. This assist allowed companies throughout the nation to maintain operations, spend money on modernisation, and retain or create jobs.
A variety of sectors reportedly benefited from the initiative, together with agriculture, tourism, manufacturing, power, expertise, and companies. With the backing of those funds, Greek firms had been capable of increase manufacturing capability, spend money on new applied sciences and gear, and enhance their competitiveness each domestically and overseas.
Regardless of its completion, new monetary devices are being developed underneath broader European frameworks such because the Restoration and Resilience Facility (RRF), the InvestEU programme, and the European Fund for Strategic Investments (EFSI). These future initiatives are anticipated to prioritise the inexperienced and digital transitions, the scaling up of innovation-driven companies, better assist for women- and youth-led enterprises, and the promotion of monetary inclusion in underserved areas.
“The EIB is proud to have partnered with the Hellenic Republic on this essential mission, and we stay up for constructing on this legacy to assist much more formidable tasks sooner or later,” added Tsakiris.
Regardless of vital macroeconomic headwinds, the GGF helped to safeguard a significant segments of the Greek financial system, by bettering liquidity circumstances and decreasing borrowing prices, allowed SMBs to take a position, develop, and innovate at a time when entry to finance was severely constrained – as per the EIB.
The GGF stands as a mannequin of cooperation between the EIB and the Hellenic Republic. Its implementation aimed to show how focused monetary devices can ship tangible advantages for companies and residents, even in difficult environments.
The EIB outlines that the GGf’s legacy will function a basis for future efforts to assist SMEs, increase innovation, and drive long-term financial development in Greece and past.
