The Greek Guarantee Fund (GGF), a financial initiative that provided support to Greek SMEs and mid-caps, announced its successful completion after having enabled €600 million in financing to Greek companies.
The news was announced by the The European Investment Bank (EIB) and the Hellenic Republic, the former of which provided the financing.
“The Greek Guarantee Fund is a remarkable example of how innovative financial tools can deliver real impact when there is strong alignment between national priorities and European financial expertise. At a time of exceptional pressure on the Greek economy, this initiative ensured that hundreds of businesses could access affordable financing and continue to grow, innovate, and preserve jobs,” said EIB Vice-President Yannis Tsakiris.
Launched in 2014, the GGF aimed to enhance access to finance for Greek businesses, stimulate job creation, and contribute to the recovery of the national economy. Over the course of its implementation, the GGF enabled EIB financing to more than 800 SMEs and mid-caps across the country.
The fund was established with the objective of stimulating lending to Greek SMEs and mid-cap companies by providing low-interest financing through local partner banks. To encourage financial institutions to lend more readily, it also aimed to offset credit risk. This support allowed businesses across the country to sustain operations, invest in modernisation, and retain or create jobs.
A wide range of sectors reportedly benefited from the initiative, including agriculture, tourism, manufacturing, energy, technology, and services. With the backing of these funds, Greek companies were able to expand production capacity, invest in new technologies and equipment, and improve their competitiveness both domestically and abroad.
Despite its completion, new financial instruments are being developed under broader European frameworks such as the Recovery and Resilience Facility (RRF), the InvestEU programme, and the European Fund for Strategic Investments (EFSI). These future initiatives are expected to prioritise the green and digital transitions, the scaling up of innovation-driven businesses, greater support for women- and youth-led enterprises, and the promotion of financial inclusion in underserved regions.
“The EIB is proud to have partnered with the Hellenic Republic on this important mission, and we look forward to building on this legacy to support even more ambitious projects in the future,” added Tsakiris.
Despite significant macroeconomic headwinds, the GGF helped to safeguard a vital segments of the Greek economy, by improving liquidity conditions and reducing borrowing costs, allowed SMBs to invest, grow, and innovate at a time when access to finance was severely constrained – as per the EIB.
The GGF stands as a model of cooperation between the EIB and the Hellenic Republic. Its implementation aimed to demonstrate how targeted financial instruments can deliver tangible benefits for businesses and citizens, even in challenging environments.
The EIB outlines that the GGf’s legacy will serve as a foundation for future efforts to support SMEs, boost innovation, and drive long-term economic growth in Greece and beyond.
