The IFC (International Finance Corporation) has signed a hundred million euro deal along with Greece based lender Eurobank to offer credit to the bank. In 2015, the IFC invested around three hundred million euros in four leading banks in Greece in its bid to recapitalize as well as become shareholder in each of them.
The International Finance Corporation was basically looking to build confidence and motivate other investors to invest their money within Greece. The IFC wanted to offer liquidity to Greece’s small businesses that play a major role in the country’s economy. The banks that the IFC invested in included National, Piraeus, Eurobank and Alpha.
Each of these banks issues fresh set of shares for filling the capital gaps revealed during the European Central Bank’s performance test & analysis. Currently, Greece is getting some amount of support from its tourism department. As a result, the country’s economy progressed by 0.3 % in the month of April-June in comparison to 1st quarter, thereby generating hopes of a massive turnaround during the 2nd half.
While, the IFC has been collaborating with the Eurobank for 5 years now, it is now hoping to establish similar tie-ups with other banks in Greece. In fact, it may also raise the credit amount for Eurobank after they have fully utilized the existing capital.