HSBC and the European Investment Bank (EIB) have entered into a new trade finance deal to support the growth of mid-sized and small-scale enterprises (SMEs) in Greece. Under the deal, the EIB will guarantee letters of credit and other trade instruments issued by Greek banks for the benefit of international trade conducted by Greek companies.
This latest agreement, valued at €200mn, forms part of the EIB’s Trade Finance Facility scheme, established in 2013 to alleviate systemic and transaction risks in the Greek trade finance sector. To date, the scheme has helped support nearly €1bn worth of international trade activities in Greece.
“Small and medium-sized businesses play a crucial role in the Greek economy, and their expansion in international trade is essential for economic growth,” says Christian Kettel Thomsen, Vice-President of the EIB responsible for lending activities in Greece. He added that the EIB is committed to working with global and Greek banking partners to break down trade barriers and support local businesses.
Vinay Mendonca, Chief Growth Officer for Global Trade and Receivables Finance at HSBC, also expressed his excitement about the deal, stating that it will provide Greek businesses with greater access to global markets and encourage international trade. HSBC’s contribution completes the remaining balance under the EIB’s third expansion of the Trade Finance Facility, which has now reached a total of €550mn.
The Greek banks involved in this agreement are Eurobank, the National Bank of Greece, and Piraeus Bank. This new deal builds on the success of previous trade finance cooperation between HSBC and the EIB, which have helped a number of Greek businesses to grow and thrive.
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