- New agreement marks third expansion of the EIB’s Trade Finance Facility (TFF) for Greece reaching a total of EUR 550 million
- Financing will directly support the trade and export finance services provided by participating Greek banks to local private companies across the country
- Greece is the only country in Europe to benefit from such an initiative
Greek companies engaged in international activities will benefit from a new EUR 200 million trade finance partnership between the European Investment Bank (EIB) and HSBC Bank plc announced in Athens today, in the presence of Yiannis Tsakiris, Deputy Minister of Development and Investment. The initiative will support trade and export finance services provided by participating Greek banks to local companies and addresses a market gap that continues to restrict international business by Greek companies.
The EIB’s Trade Finance Facility, to which HSBC has been a key partner from the outset, was developed especially for SME’s and Midcaps in Greece and will continue to support letters of credit and trade-related guarantees covering exchange rate, political and payment risks.
Following today’s agreement, companies across Greece will benefit from new trade financing provided locally by Eurobank, National Bank of Greece and Piraeus Bank, and guaranteed by the EIB and HSBC, alongside other international banks.
“Export-focused companies are an integral part of the Greek economy and expanded international trade is crucial for economic growth. Trade finance is essential for most international trade and the EIB is committed to working with international and Greek banking partners to overcome trade-finance barriers,” said Christian Kettel Thomsen, the EIB’s Vice President responsible for lending in Greece. “The new EUR 200 million partnership between HSBC and the EIB builds on the success of previous trade finance cooperation and ensures that leading Greek companies can secure access to global markets. Today’s agreement will both improve access to trade finance and demonstrates the clear commitment of international and local banks to ensuring that Greek companies can expand business opportunities and create jobs.”
“We are delighted to continue our long-standing partnership with the EIB and participate in this important Trade Finance Facility developed for Greece. Access to international supply chains and cross border capital flows play a significant role for the growth prospects of Greek companies and the Greek economy and HSBC is pleased to contribute to supporting this growth,” said Alexandra Konida, Managing Director at HSBC.
More than 90% of trade transactions involve some form of credit, insurance or guarantee and companies seeking international tenders usually require financial guarantees. The EIB’s Trade Finance Facility has demonstrated significant support to enable Greek banks, best placed to understand local companies, to enhance provision of trade finance services to Greek clients. It was first launched in 2013 and has so far supported almost €1 billion of international trade activity of Greek enterprises with a particular focus on exports.
Companies seeking trade financing supported by the EIB Trade Finance Facility can contact one of the Greek banking partners directly.