Eurobank announced on Tuesday it has signed new agreements with national and European institutions to finance small and medium-sized enterprises in Greece.
More specifically, the European Investment Fund (EIF) and Eurobank signed a new extension of their initial agreement, in the context of the COSME programme, for an additional amount of 390 million euros. With the new agreement the total amount for funding very small, small- and medium-sized enterprises (SMEs) has reached 650 million euros. The COSME programme (with a total budget of 2.3 billion euros for the period 2014-2020) aims at improving the competitiveness of companies, especially small and medium-sized ones (SMEs). In particular, the financial tool, COSME Loan Guarantee Facility, provided in the context of the COSME programme, provides guarantees to the financial institutions to increase their financing to SMEs with reduced collateral requirements.
This financing is made possible thanks to the Guarantee that has been provided by COSME and the European Fund for Strategic Investments (EFSI) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.
Additionally, Eurobank signed an agreement with ETEAN SA for the continuation of the activity of the Entrepreneurship Fund (TEPIX) “Business Restarting” (Intermediate TEPIX I). The “Intermediate TEPIX I” aims to cover the funding gap until the initiation of Entrepreneurship Fund II (TEPIX II), which is expected to take place in the second half of the year. In particular, through the Intermediate TEPIX I, funds from the banking sector will be channeled into the market for a total amount of 384 million euros, out of which 192 million euros comes from ETEAN S.A.
With regards to the Entrepreneurship Fund (TEPIX) “Business Restarting”, the Bank and ETEAN S.A. have formed a common fund in which the Bank and ETEAN S.A co-invest -each one participating with 50 pct – for the financing of very small, small and medium-sized enterprises with favorable terms. In particular, 50 pct of the funding which comes from TEPIX funds, is interest free, while the remaining 50 pct financed by the Bank, is offered at a preferential interest rate, resulting to a particularly low weighted average annual interest rate for the eligible companies.
At the same time and in the context of the programme “NSRF 2014-2020”, Eurobank offers a comprehensive financing programme for companies, supporting the implementation efforts of their investment plans.