Microfinance Focus, January 6, 2012: The European Investment Fund (EIF) and Pancretan Cooperative Bank have signed a guarantee and a loan agreement aimed at supporting micro-businesses and self-employed entrepreneurs in Greece.

These two transactions were signed under the European Progress Microfinance Facility (Progress Microfinance), funded by the European Commission and the European Investment Bank and managed by the European Investment Fund.

The loan will enable Pancretan Cooperative Bank to offer up to EUR 6m of micro loans to micro- entrepreneurs in Greece. The bank will focus on financing start-ups and new borrowers and at the same time it will reduce collateral requirements for new and existing micro borrowers. With a leverage of 1.5 times, PCB will generate up to EUR 13m microloans to micro-enterprises.

The two transactions are expected to generate a total loan amount of EUR 19m and will support more than 1000 microenterprises in Greece.

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 203 m of funding from the European Commission and the European Investment Bank.