EIB funding € 5 billion for private investment through Recovery Fund “Greece 2.0”

European Investment Bank and the Ministry of Finance signed an agreement for the financing of large private investments of the Greek plan for the Recovery Fund “Greece 2.0” with 5 billion euros, the first such agreement in the EU.

The EIB will contribute to the identification of investment projects with social and economic benefits, with reference points to  energy and digital transition, ie the two categories of investment to which the EU requires the allocation of 57% of the resources of the Recovery and Sustainability Mechanism.

EIB experts on technical, financial and environmental issues will identify high-impact projects, priority areas, and effective financial structures to ensure the best use of the new European financial and lending support for Greece, in order to reduce the social and economic impact. coronavirus pandemic.

This new agreement, signed today by Deputy Finance Minister Theodoros Skylakakis and EIB Vice President Christian Kettel Thomsen, in the presence of Finance Minister Christos Staikouras, marks the first time the European Investment Bank has agreed to assist a European state in implementing Recovery and Durability Mechanism.

“The Greek Government has already worked hard to take advantage of the unique opportunity offered by the Recovery Fund, so that our country can achieve a strong, sustainable and socially just recovery and development. We have prepared a realistically ambitious, modern, innovative and extroverted National Plan for Recovery and Sustainability, which includes structural reforms, effective public investment and significant private sector involvement. The key agreement signed today, between the Ministry of Finance and the European Investment Bank, will give a great additional impetus to the implementation of the projects of the National Recovery and Sustainability Plan “Greece 2.0”. Through this agreement, our country will benefit from the technical, economic and financial expertise of the EIB in identifying high impact investments and effective structures, which will make a decisive contribution to the optimal utilization of the resources of the Recovery Fund.

In addition, the Bank of the European Union may offer financing, in parallel with the resources of the Recovery Fund, for some of the projects that will be examined and evaluated by its experts. Thus, the European Investment Bank reaffirms today, in the best possible way, that it is an invaluable partner in our efforts to meet the health, social, and economic challenges of our time, while at the same time laying a solid foundation for the systematic increase of disposable income, coverage of the investment gap, and the creation of many good new jobs in Greece “, said Christos Staikouras, Minister of Finance and Board Member of the European Investment Bank.

“The cooperation with the European Investment Bank in the framework of the Recovery Fund, the first carried out by the bank with an EU country marks the maturity of the planning of the National Recovery Plan “Greece 2.0″. Our goal is to implement the large private investments, which will be financed by the loan tool offered by the Recovery Fund, not losing a single day. The Government’s commitment to filling the investment gap and creating 200,000 permanent jobs requires cooperation with reliable partners, such as the European Investment Bank, which will contribute to our effort with its credibility, its vast know-how and potentially significant additional funds,” said Theodoros Skylakakis, Deputy Minister of Finance.

“For the last 58 years, the European Investment Bank has been supporting new investments with the aim of” unlocking “financial opportunities, transforming services and supporting climate action throughout Greece. The EIB is ready to support Greece’s ambitious plans to take advantage of the unique opportunities provided by the Recovery and Resilience Facility funds. The new cooperation agreed today will allow the EIB, which has a deep understanding of long-term investment, to enhance the impact of the investments supported by the Recovery and Sustainability Mechanism. This will ensure that the recovery from the challenges posed by COVID-19 is accompanied by actions on climate, the exploitation of digital opportunities, and the acceleration of the energy transition. This agreement marks the first formal cooperation between the EIB and a national partner in order to take advantage of the opportunities provided by the Recovery and Resilience Facility to build an even better future,” said Christian Kettel Thomsen, Vice President of the European Investment Bank, responsible for lending operations in Greece.

Using global best practices

Greece is expected to receive about 31 billion euros from the European Recovery and Resilience Facility in the form of grants and loans, a one-time initiative that aims to help repair the immediate economic and social damage caused by the coronavirus pandemic.

Today’s agreement will allow the European Investment Bank’s Special Investment Team for Greece to work with the Greek authorities to make the best use of the European and Resilience Facility to identify potential public sector projects, private investment SME financing programs, and targeted advisory initiatives.

This is the first EIB cooperation in Europe with the aim of implementing investments supported by the Recovery and Resilience Facility.

Priority to green and digital investments will benefit from EIB know-how

The main focus of the new investments will be the support actions for the climate, the transition to green energy, and the digital transformation, together with other sectors that reflect the social and economic priorities in Greece.

The new partnership will initially focus on identifying and proposing new high-impact investment projects across the country, with investments of around € 5 billion, under the National Recovery and Sustainability Plan.

Projects will be reviewed and evaluated by EIB experts and may also receive EIB funding, in addition to the resources of the European Recovery and Sustainability Mechanism.

Utilizing the record financial assistance of the EIB Group in Greece

This new initiative further strengthens the strong and stable participation of the EIB Group in Greece.

Last year, the European Investment Bank and the European Investment Fund provided new record support of € 2.8 billion for high-impact private and public investment in Greece.