EAFRD Guarantee Fund 2014-2020, Greece

This case study presents the financial instrument introduced for the Greek agricultural sector, featuring a portfolio guarantee under a Fund of Funds (FoF) structure set up in 2019. The financial instrument is supported by the Rural Development Programme (RDP) 2014-2020 of Greece with a contribution of EUR 80 million from the European Agricultural Fund for Rural Development (EAFRD), plus support from the European Fund for Strategic Investment (EFSI) of up to EUR 20 million.

The financial instrument aims to support new loans and finance leases for agricultural and agri-food businesses and in accordance with the instrument’s features is expected to result in a portfolio of new financing from the banks of EUR 480 million.

The benefit of the guarantee provided under the instrument is transferred to targeted recipients in the form of lower financing costs, with reduced interest rates, lower collateral requirements and/or decreased transaction fees.