Hellenic Development Bank upgraded, set to mobilize up to 5 billion euros in loans

The Hellenic Development Bank (HDB) has entered a new era following its upgrade by the European Commission, transforming it into a certified partner for implementing EU funding programs. This development, confirmed by the Commission's Pillar Assessment on July 15, promises cheaper loans, enhanced guarantees, and new financing tools for SMEs, farmers, and households.

With an initial "dowry" of approximately 2 billion euros from unused Recovery Fund resources, the HDB is poised to leverage the banking system to mobilize up to 5 billion euros in financing. This increased capacity aims to provide more SMEs with access to more affordable credit under better terms. The bank is also preparing to support agricultural entrepreneurship through a new fund that will combine loans and grants specifically tailored for farmers.

This certification marks a significant achievement for the HDB, as it gains the authority to manage EU funds directly, bypassing ministerial intermediaries. This upgrade comes at a crucial time, as the Recovery and Resilience Facility concludes and Greece prepares for the EU's next Multiannual Financial Framework (2028-2034). The HDB's enhanced role will be showcased at the Thessaloniki International Fair, where new programs are expected to be announced.

The bank's new strategic role is the result of four years of intensive preparation and audits. The HDB's ability to directly manage EU funds signifies a major shift, positioning it as a versatile development tool for Greece's financing needs over the coming decade.