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EBRD approves new five-year strategy for Greece



           


The EBRD will continue to support the Greek economy for five years (photo: EBRD)
The EBRD will continue to support the Greek economy for five years (photo: EBRD)
GREECE. The Board of Directors of the European Bank for Reconstruction and Development (EBRD) approved on Thursday 22 October 2020 its new strategy for Greece that will guide its investments over the next five years.

The bank has three operational and strategic priorities until the end of 2025. "The EBRD is well placed to support the Greek economy, particularly by helping the country overcome the impact of the coronavirus pandemic. We will channel investment into areas where our support is most needed, boosting the competitiveness of the private sector, supporting the transition to a greener economy and further developing the financial sector and capital markets," said Andreea Moraru, the EBRD's Regional Director for Greece and Cyprus from November 2019.

On the first point, the bank intends to target private companies with strong export potential and solid business models. They will be assisted through direct and indirect financing with the aim of facilitating cross-border transactions, strengthening links in the value chain and promoting strategic consolidation to help accelerate business recovery.
"The Bank's political commitment should complement investment and help to improve the business climate as well as promote economic reforms and strengthen private sector participation, including through privatisation and public-private partnership projects," the EBRD statement said.

Secondly, the bank also wants to focus on renewable energy and urban regeneration projects that promote sustainable development and resilience to climate change. This will be done in particular by establishing additional regional links. In early October 2020 it had invested in the National Bank of Greece's first green bond issue.

Finally, the EBRD wants to continue its work on strengthening the Greek financial sector and its resilience. The EBRD will therefore focus its efforts in particular on settling bad bank loans and developing capital markets.

To date, and since its first operations in 2015, the EBRD has invested some €4 billion (€3.91 billion) in sixty-five projects in Greece, 92% of which were in the private sector. Its current portfolio in Greece amounts to €1.92 billion.


Frédéric Dubessy


Thursday, October 22nd 2020



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