Institution for Growth in Greece (IfG): Establishment of the first sub-fund

Frankfurt (ots) -

- The first of three planned sub-funds was established on 7 May
2014 in Luxembourg
- Greece and KfW are to each provide financing of EUR 100 million
- IfG will distribute the funds to small and medium-sized
enterprises (SMEs) in Greece with the help of accredited Greek
banks
- Key objective is to provide Greek SMEs with improved access to
investment loans and working capital to help foster economic
growth

The first of three planned IfG sub-funds was founded on 7 May 2014
in Luxembourg. The Hellenic Republic and KfW - on behalf of the
German Federal Government - will each contribute EUR 100 million in
funding debt to this sub-fund. These funds will be lent to small and
medium-sized enterprises in Greece in the form of loans from Greek
on-lending banks. The IfG will thus make it easier for Greek SMEs to
access investment loans and working capital, thereby contributing
towards the recovery of the Greek economy.

The Greek Minister of Finance Yannis Stournaras, the Greek
Minister of Development and Competitiveness Kostis Hatzidakis and the
Chief Executive Officer of KfW Dr Ulrich Schröder are meeting today
in Athens to officially give the project the "green light" and to
discuss how to best implement the agreed measures.

The establishment of the first sub-fund is an important milestone;
it is a key prerequisite for the start of the operational phase of
this project, which is supported by the German Federal Ministry of
Finance.

In the first round of discussions, various Greek banks were
informed of the project and of their potential role as sales
partners.

The next steps now involve the conclusion of contracts between IfG
and Greek on-lending banks, as well as the commencement of business
activity in the third quarter of 2014.

About the Institution for Growth (IfG)

In May 2012, a European working party was appointed to develop a
concept for the foundation of an institute to promote the Greek
economy. The working party includes representatives of the European
Investment Bank, the European Commission, the French Ministry for
Finance and KfW.

In February 2013, the Greek Minister of Development and
Competitiveness Kostis Hatzidakis approved the proposed concept for
an IfG umbrella fund with three different sub-funds to be founded
according to their specific promotional purpose: one sub-fund that
will provide borrowed funds to Greek SMEs, one sub-fund that will
provide equity capital to Greek SMEs and one sub-fund for financing
infrastructure projects.

As part of a delegation trip by Federal Minister Dr Schäuble to
Athens in July 2013, a memorandum of understanding was signed to
implement the first sub-fund (borrowed funds for small and
medium-sized companies).

Contact:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM), Nathalie Drücke,
Tel.: +49 (0)69 7431 2098, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de