De­vel­op­ment bank for in­fra­struc­ture projects

Kathimerini English - - Focus -

Greece will set up a de­vel­op­ment bank to fund in­fra­struc­ture projects, start-ups, small busi­nesses and ex­port-ori­ented com­pa­nies, the gov­ern­ment’s eco­nomic pol­icy coun­cil said yes­ter­day. 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 gap in the coun­try’s fund­ing gap.” Greece’s econ­omy, bat­tered by the coun­try’s debt cri­sis, is strug­gling to re­cover af­ter a multi-year deep re­ces­sion. 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.

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