The European Investment Bank (EIB) said it is lending the National Bank of Greece (NBG) €250 million to increase support for green investments made by Greek small and medium-sized enterprises (SMEs) and mid-caps.

“The agreement raises the total intermediated lending made available through this EIB facility to back decarbonization investment by smaller Greek companies to €1 billion,” said the EIB.

“The new agreement will enable hundreds of SMEs and Mid-Caps in the country to get NBG loans on favourable terms, including reduced interest rates, for investments that help tackle climate change.

“The accord follows similar EIB deals with both NBG and Piraeus Bank since 2020.”

EIB Vice-President Yannis Tsakiris said: “Reaching this €1 billion milestone highlights the EIB’s unwavering support for Greece’s green transition and our commitment to foster sustainable economic growth.

“The partnership with NBG has been essential in enabling Greek businesses to access financing for climate-focused investments, helping them grow while contributing to a greener future.”

The EIB added: “The new €250 million credit to NBG is part of an EIB programme to spur green investments by Greek SMEs and Mid-Caps, which form the backbone of the country’s economy.

“Established in 2020, the programme is the first of its kind in Greece and is open to all eligible banks in Greece, with NBG and Piraeus Bank having taken part so far. The latest NBG loan brings its total participation in the programme to €800m.”

NBG CEO Pavlos Mylonas said: “NBG has absorbed 80% of the €1 billion total program financing illustrating our ongoing commitment to support Greek SMEs and Midcaps, while allowing us to further grow our green projects’ portfolio.”

So far, more than 350 Greek businesses have benefitted from the EIB’s support under the programme. Because the EIB requires recipient banks to match its funding, the total financing mobilised for green projects in Greece is expected to reach €2 billion.