Vulnerable communities and small businesses across Greece can now benefit from a new €8.1 million financing scheme managed by Attica Bank and backed by the European Investment Fund (EIF). The new financing will allow entrepreneurs to create jobs and help vulnerable groups boost their business activity through easier access to finance.
Over the next five years, Attica Bank is expected to provide more than 1,200 high-impact loans to self-employed entrepreneurs and micro-enterprises, including companies with a short operational history and/or owned by vulnerable groups such as young people, people over 55 years old, recently unemployed, people from ethnic minorities and foreign residents.
Reflecting the business needs of vulnerable groups the average loan size will be around €8,300. Loans will be available from Attica Bank branches across Greece. The new lending program represents the first Attica Bank financing supported by the European Investment Fund and the first financing by Attica Bank under the EaSI scheme.
The new nationwide financing scheme is supported by the European Commissions Employment and Social Innovation Guarantee Instrument for Microfinance (EaSI program) will be managed by Attica Bank. It is designed to help offset the damaging economic effects that the COVID-19 pandemic has had on specific sectors of the Greek economy.
Individuals and small businesses will benefit from lower interest rates, reduced collateral requirements, and reduced fees depending on their investment focus.
The vulnerable groups and start-ups are expected to make around a quarter of the new high-impact financing scheme. The initiative will enable longer-term loans, with up to 5-year maturity.
The new EIF financing is part of the EIB Groups COVID-19 response and engagement to strengthen economic resilience and improve access to finance. The new initiative reflects the increased demand for working capital financing from very small businesses caused by the pandemic.
The latest scheme marks the continuation of the EIB Group’s strong cooperation with lenders in Greece. Last year the EIB Group provided €1.2 billion for targeted credit lines managed by 11 leading Greek banks.
