Greece to receive EBRD funding until 2020
Greece will continue to receive financing from the European Bank for Reconstruction (EBRD) and Development until 2020, in the journey to economic overhaul.
The EBRD, owned by 64 countries, the EU and the European Investment Bank, will aim to restore capital to Greece’s small and medium sized private businesses in-particular.
“There are two broad areas where the EBRD might well make a number of operations: firstly helping Greek companies regain access to finance,” said EBRD President Suma Chakrabarti in Brussels. “The other area we’d like to do more to promote is regional economic integration, bring private sector knowledge and finance to such areas as energy and infrastructure.”
Greece’s bailout program was extended last month, as the Government pledged to overhaul tax collection, consolidate pension funds and maintain sales of state-owned assets. However, further bailout funds will only be granted if Greece passes a review from the European Commission, the ECB and the International Monetary Fund.
With Greece short of cash and cut off from financial markets, the EBRD will also seek to expand Greek private enterprises’ role in infrastructure and energy profits.
Greece, the most indebted country in the EU, has received bailouts pledging €240bn since 2010, marking the biggest restructuring of debt in history.