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Eurobank EFG selected to manage JESSICA funds

Eurobank EFG has been selected by a competitive procedure to manage the European funding tool JESSICA in the Western Greece and Peloponnese Regions in conjunction with Eurobank Property Services. Eurobank EFG is already in contact with authorities and institutions in both regions to identify appropriate projects for inclusion in JESSICA.

Approximately 40 million Euros will be invested in Western Greece and 28 million Euros in the Peloponnese. In total, the projected JESSICA funds for Greece amount to 258 million Euros, with the potential to further increase this amount, if there is sufficient investor interest.

JESSICA(Joint European Support for Sustainable Investment in City Areas) is an initiative of the European Commission developed in co-operation with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). It is a new tool for exploiting Structural Funds allocated for urban development, by providing refundable aid (e.g. loans) and encouraging the mobilization of private financing. Urban development projects may involve, among others, urban transport infrastructure, water supply, sewerage and waste management, building restoration, recovery of abandoned industrial sites, the establishment of business parks, university buildings, including medical, biotech and other specialized facilities and the improvement of energy efficiency.

Each project may be financed at a maximum of 70% from JESSICA sources. Other financing sources should amount to a minimum of 30%. Furthermore at least 10% financing must come from bank borrowings and a minimum of 10% from the investor’s own contribution.

The projects should be integrated into Integrated Urban Development Plans or other, development and spatial design or planning frameworks that have been approved by public agencies and be compatible to the guidelines of the respective NSRF Regional Programmes. According to the specifications of the JESSICA initiative, these projects must generate revenue, but at a level lower than what would allow their independent viability. Their sustainability will be supported by the favourable financing conditions offered by JESSICA.

The participation by Eurobank EFG in the Jessica Programme is a part of the broader context of the Bank’s consistent activity in the Local Government sphere, which has included a wide range of specialized banking products over the years. Through its participation in Jessica, Eurobank EFG continues to responsibly support programmes and activities, which utilize NSRF sources and mobilize additional bank and private funds to support Greek entrepreneurship and the growth of economic activity in Greece.