Micro-loan fund for agricultural entrepreneurship in Greece

October 2023

The Micro-Loan Fund for Agricultural Entrepreneurship features a risk-sharing micro-loan facility under a Fund of Funds (FoF) structure, managed by the Hellenic Development Bank (HDB). Supported by Greece’s Rural Development Programme (RDP) 2014-2022 with a contribution of EUR 21.5 million from the European Agricultural Fund for Rural Development (EAFRD), it is the first micro-finance instrument for the primary sector in the country. The instrument co-finances new loan portfolios built-up by financial intermediaries at a risk-sharing rate of 50%. In addition to the Micro-Loan Fund's 50% interest-free participation in each loan, it provides an interest rate subsidy during the first two years of the loan for the remainder. Furthermore, there is an optional grant of EUR 300 for consulting services, facilitated by consultancy firms associated with the financial intermediaries.