Piraeus Bank to obtain 20m EUR from EIB to finance SME and local self-government

Piraeus Bank Belgrade has ratified the contract with European Investment Bank (EIB) for direct financing in amount of 20m EUR, with the guarantee of Piraeus Bank Athens. In this way, the bank provided additional sources of finance for Serbia economy, SME sector and local self-government.

The funds within the general credit line, with the guarantees of mother banks, intended for the economies of the countries in western Balkans, will be made available in the first quarter of year 2010. Piraeus Bank from Athens issued the guarantees worth 150m EUR for all members of Piraeus banking group that operate in the region. In that way, the bank resumed implementation of its active policy of growth of credit activities at the moment when the economies of the countries in Western Balkans need it the most since they are all hit by the global crisis.

The credit funds are intended for financing the investments in permanent capital funds. IN addition to small and mid-sized enterprises, the users of the loan can be local self-governments and other users, regardless of its size, that implements the projects in the fields of economy, energy, environment protection, industry, health and education, tourism, etc.

The repayment period depends on who the end-user of funds is, and it ranges between 12 and 15 years. The grace period is 4 to 5 years.