Greek Development Bank to be operational in June

Greek Development Bank to be operational in June

The Greek Development Bank is expected to become operational by the end of next June, sources from the Ministry of Economy and Development said. However, it is not clear at the moment when exactly the bill is expected to come to parliament.

It is important to remind that there has already been a Memorandum of Understanding with French Development bank, and according to the same sources, there is strong interest from both China and Brazil. Germany’s participation is still pending, as there a government has not yet been formed in Berlin; since the president of the German Development Bank is always the Finance minister of the country, there needs to be a government first. Besides, it is worth mentioning that ETEAN has already worked with the corresponding German Development Bank, and the first put nearly 100 million euros, while the second approximately 200 million euros. In addition, the possibility of collaborating with the World Bank’s financing offshoot, IFC, is being considered. Regarding possible co-operations, the same sources from the Ministry of Economy were pointing to the Business Bank of England as a possible additional partner.

Greek operators

It is noteworthy that this body will operate in the form of a financial mechanism, since a Holding Company will be established as a parent one. Public Sector Operators (ETEAN, OAEP, Deposits and Loans Fund, Enterprise Greece, Green Fund, etc.) with financial capacity or developmental role will be called to co-operate with it or participate in it. At the same time, cooperation and/or participation in the share capital of international financial institutions will be sought. The aim is for the Development Bank to be “provided” with the necessary resources and assets which will enable it to fulfill its role, which will concern

· Infrastructure

· Regional development projects

· Small and medium-sized enterprises

· Export-oriented and extrovert businesses…/IBNA

Photo: Greek Ministry of Finance