European Fund for Strategic Investments (EFSI) invests € 2.7 billion in Greece
The European Fund for Strategic Investments (EFSI) reported total lending of € 2.7 billion in Greece, with a further € 10.9 billion planned. Greece has the highest absorption rate of investments as a share of GDP.
The European Fund for Strategic Investments (EFSI) is an initiative of the European Investment Bank (EIB) and the European Commission designed to promote investment in the European Union. The Fund is a € 26 billion loan guarantee, supplemented by a € 7.5 billion capital allocation from the EIB. This € 33.5 bln will leverage additional investment of € 500 billion by 2020.
This capital will be invested in:
Strategic infrastructure including digital, transport and energy
Education, research, development and innovation
Renewable energy and resource efficiency
Support for small and mid-sized businesses
EFSI has reported total lending of € 2.7 billion in Greece, with a further € 10.9 billion planned. Greece has the highest absorption rate of investments as a share of GDP, followed by Estonia, Lithuania and Portugal.
Some keynote investments in Greece include:
18 Infrastructure and Innovation projects, with approximately €2.3 billion in total financing;
12 Small and Medium Enterprise (SME) agreements with intermediary banks financed with €404 million in total financing. This is set to trigger approximately €3.7 billion in investments with some 20,818 SMEs and mid-cap companies
Some examples of EFSI projects in Greece include:
The EIB is providing Terna Energy Group with a €24 million loan to build three new wind farms in Viotia in central Greece
The EIB is lending Greek telecoms operator Cosmote €150 million to roll out high speed broadband across Greece.
The EIB is providing agri-food company Creta Farms a €15 million loan to develop new product lines and expand its business abroad. The biggest cold-cuts company in Greece, Creta Farms spends five times as much as its peers on innovative ways to produce healthier meats. It removes saturated animal fats from its meats and injects extra virgin olive oil into them. The company took on 100 extra staff thanks to the new finance.
Mani Foods produces, packages and exports Kalamata olives, winning awards for its extra virgin olive oil. To keep up with rising demand, Mani Foods needed to invest in new machinery. The company secured a loan from the National Bank of Greece that is guaranteed by the EIF under the Investment Plan. With this financing Mani Foods has expanded its factory for new business, developed new product lines and doubled its staff.
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