Greece's Agriculture Ministry and the Hellenic Development Bank have launched a new €250 million loan fund for the agri-food sector, the first of three financing tools aimed at improving access to credit across the industry.
The Agri-Food Sector Guarantee Fund, backed by €80 million in public funds, offers investment loans ranging from €25,000 to €3.5 million with repayment terms of 2 to 15 years, alongside working capital loans of €25,000 to €500,000 over 2 to 5 years. Each loan carries a 70% state guarantee and up to 4% interest rate subsidy for up to four years, plus advisory support worth up to €1,600.
"One of the biggest problems for anyone wanting to invest in Greek agri-food today has been access to financing on terms they can actually afford," said Agriculture and Food Minister Margaritis Schoinas.
"We are mobilizing €160 million in public funds to create financing capacity of roughly €365 million for the entire agri-food chain."
Hellenic Development Bank CEO Ismini Papakyrillou said the fund draws on the bank's experience delivering favorable financing terms, with a goal of getting the first loans to farmers and businesses as quickly as possible.
Two additional tools are expected to launch soon: the Agricultural Entrepreneurship Small Loans Fund II, offering €95 million in loans from €10,000 to €50,000, half interest-free; and the Young Farmers Guarantee Fund, targeting farmers under 40 with €20 million in loans up to €50,000, which can be combined with up to €40,000 in non-repayable establishment grants, bringing total support per beneficiary to as much as €90,000.