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Victoria Mindova

Two billion euro borrowed the Greek State from the European Investment Bank for the lunching of the projects under the National Programme for Strategic Development for the period 2009-2015 (ESPA). This is the biggest credit which Greece has ever drawn from the European bank. The loan is for a period of 25 years with 7 years grace period and interest rate will be fixed or variable between 2% to 4% depending on the resources and market conditions, during which the specific amount is borrowed. The funds will be drawn in three tranches, the first may be up to 30% of the total loan amount or about 600 million euros. The other two tranches will be drawn consecutively after 80% of funds from the previous tranche have been allocated.

"This loan comes at the right time and it will stimulate the smooth financing of projects under the National framework for strategic development," said Minister of Finance George Papakonstantinou. The loan covers 50% of the required four billion euros from the state to launch projects with funding from the national framework for strategic development. "We expect three to four times greater return on investment after completion of each project," said Minister of Economy, Development and merchant marine Luka Katseli, who clarified that state subsidies will attract additional private investment, which will be crucial to the positive economic growth in the country in coming years. The main purpose of the loan is to develop programs for the improvement of the rural infrastructure in the country, to develop innovation in the field of information and communication technologies.

The largest amount of the loan of about one billion euro is set for the improvement of the railway network in the country. This investment will focus on the completion of the line Patras-Athens-Thessaloniki-Evzonos as well as for the building of a railway junction in the reagion of Aharnes. It also includes funds for the construction of a railway connection of the container terminal Nea Iconium, which will serve the load port of Piraeus.

The money from the state credit will be used as a tool to promote the common projects between the private and public sectors, paying particular attention to sectors related to communications, renewable energy sources and the improvement of the management of waste in the populated areas. Particularly important are the programs related to improving the quality of life in cities, which will be financed by the special fund of the EIB JESSICA. By the fund are set 258 million euros (part of the total amount of two billion euros) which will be distributed between the different villages of Greece. JESSICA will finance regional operational programs for 13 districts of the country, with the ultimate goal of creating partnerships between public and private sectors.