Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) partnered with the Cooperative Bank of Thessaly (CBT) to address the significant financing challenges faced by micro-entrepreneurs in Greece, particularly in the Thessaly region. The specific issue was the difficulty for very small businesses to access traditional financing, which was exacerbated by the financial crises that had impacted many local enterprises.
To tackle this problem, the EIF and CBT established a microfinance guarantee agreement under the EU Programme for Employment and Social Innovation (EaSI). This agreement, supported by the European Fund for Strategic Investments (EFSI), enabled CBT to provide loans totaling EUR 7.5 million to 500 micro-entrepreneurs over a five-year period. The tailored solution included offering loans at reduced interest rates and with lower collateral requirements, specifically targeting start-ups, businesses affected by the financial crises, and agro-industry enterprises.
As a result of this initiative, micro-entrepreneurs in the Thessaly region gained access to essential funding that would allow them to start, grow, and expand their businesses. The program aimed to support young entrepreneurs and innovative small business ideas, with loans available for amounts up to EUR 25,000. This initiative not only facilitated easier access to finance for these businesses but also contributed to job creation and economic dynamism in the local economy, demonstrating a significant positive impact on the livelihoods of many individuals in the region.