KfW signs agreement to finance Greek Investment Fund

Development & Competitiveness Minister Costis Hatzidakis and KfW executive vice-president Dr Lutz-Christian Funke on Wednesday signed an agreement on the German development bank's participation in the financing of a Greek investment fund, the Institution for Growth (IfG) in Greece, with 100 million euros.

The signing ceremony was held in the presence of Finance Minister Yannis Stournaras, who noted that after four difficult years, the economy had stabilised and the first signs of growth were apparent.

The signature of the agreement opens the way for the formation as a legal entity of a fund to finance small and medium-sized enterprises (SMEs), which is due to happen within the next 20 days. This will provide capital to Greek banks to finance SMEs on favourable terms. It will also provide capital support to SMEs by participating in their share capital and finance infrastructure projects not covered by the European Investment Bank programmes.