The EIF and Pancretan Cooperative Bank have signed a guarantee and a loan agreement aimed at supporting micro-businesses and self-employed entrepreneurs in Greece. These two transactions were signed under the European Progress Microfinance Facility (Progress Microfinance), funded by the European Commission and the European Investment Bank and managed by the European Investment Fund.

Thanks to the Progress Microfinance guarantee, Pancretan Cooperative Bank will be able to offer up to EUR 6m of micro loans to micro entrepreneurs in Greece. The bank will focus on financing start-ups and new borrowers and at the same time it will reduce collateral requirements for new and existing micro borrowers.

The senior loan under Progress Microfinance is expected to allow PCB to meet the demand of numerous micro enterprises facing difficulties in accessing finance due to the credit crunch and the stricter eligibility requirements applied by the Greek banking sector. With a leverage of 1.5 times, PCB will generate up to EUR 13m microloans to micro-enterprises.

These two transactions aim at providing additional financing for Greek micro-enterprises and self-employed, contributing to job creation and local development. The two transactions are expected to generate a total loan amount of EUR 19m and will support more than 1000 microenterprises in Greece.

About the European Progress Microfinance Facility

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 203 m of funding from the European Commission and the European Investment Bank. Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Loans less than EUR 25,000 are made available through selected intermediaries participating in the facility. Progress Microfinance does not provide financing or guarantees to micro-entrepreneurs or individuals directly.

About the EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total net commitments to private equity funds amounted to over EUR 5.4bn at end 2010. With investments in over 300 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF commitment in guarantees totalled over EUR 14.7bn in close to 160 operations at end 2010, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Pancretan Cooperative Bank

Pancretan Cooperative Bank was founded in July 1993. Operating for 18 years it succeeded to become the biggest cooperative organisation in Greece, numbering more than 80.000 active members who represent nearly one third of the Cretan households.

It is considered to be a business of the Social Economy, aiming not only at maximizing its revenues, but also at promoting the social and economic growth of Crete, focusing on its customers’ special interest.

Pancretan Cooperative Bank holds the 1^st position in financing small and medium size enterprises. The bank supports professionals, new entrepreneurs, employees, retired people, farmers, households, as well as, all present and prospective customers living and working in remote areas around the island, offering specialized banking products and professional advice.

It possesses an expanded network of 52 branches all over Crete, 60 branches in total, and it is considered to be the first preferred bank within small and medium size enterprises locally. Pancretan Coop Bank is the most profitable organization in Crete.

Press Contacts

For further information, please contact David Yormesor, d.yormesor@eif.org

For information on Pancretan Cooperative Bank please contact Vaggelis Pteroudis, epteroudis@pancretabank.gr, or visit Pancretan Bank’s website www.pancretabank.gr

HIGHLIGHTS

European Progress Microfinance Facility