Greece: EIB agrees EUR 40m lending programme with Pancretan Cooperative Bank to focus on youth unemployment

The European Investment Bank has agreed to provide EUR 40 million to support new small business lending by the Pancretan Cooperative Bank that focuses on creating jobs for unemployed young people.

The new lending, signed earlier this month, the first EIB lending in Greece under the “Skills and Jobs - Investing for Youth” initiative, includes EUR 20 million agreed under a new contract and EUR 20 million from an existing credit line, will support investment by small and medium sized enterprises and provide working capital for eligible youth employment investment.

“The European Investment Bank is committed to supporting investment that tackles local issues and unlocks economic opportunities across Europe. We are pleased to continue our close cooperation with the Pancretan Cooperative Bank and together assist local companies seeking to create jobs for young people. This is the first lending programme with a Greek bank under the Investing for Youth initiative and we look forward to expanding this engagement with other local banks in the coming months.” said Jonathan Taylor, European Investment Bank Vice President responsible for lending in Greece.

The new lending programme follows dedicated support for youth employment provided over the last 18 months by the Pancretan Cooperative Bank, also backed by the European Investment Bank. This includes EUR 15 million already provided to 3 tourism companies in Crete that employ young people

The EIB launched the "Skills and Jobs - Investing for Youth" initiative the Bank’s first ever dedicated lending programme to specifically support young people in July 2013. This complements youth employment policies at EU and Member State level. This programme is focused on financing of facilities for vocational training, student and apprentice mobility, and aims to address the shortage of jobs for young people in smaller companies.

Under the "Skills and Jobs - Investing for Youth" initiative the European Investment Bank finances lending by local banks in countries where labour market conditions are particularly difficult for young people.

Over recent years the European Investment Bank has provided a total of EUR 175 million for lending by Pancretan. This includes EUR 155 million that has supported investment in key economic sectors such as tourism, energy, manufacturing and marketing of food products.

Pancretan expects to disburse the new EUR 40 million EIB loan by the end of the year for investment that reflects the local challenges faced by companies in Crete. Local companies investment in creating jobs for young people will benefit from more competitive interest rates and be able to strengthen their response to tackling high-levels of unemployment amongst young people on the island.