Berlin to help Athens create Greek investment fund

13th December 2012, Comments 0 comments

Germany will help Athens set up an investment fund to restore investor confidence and win back private capital, ministers from both countries said here Thursday.

German Economics Minister Philipp Roesler told a joint news conference with Greek Development Minister Kostis Hatzidakis that they aimed to work together to create a development fund to support Greece's economy.

Neither minister gave a figure for how much financial firepower the new fund would have but they said it would be financed both by existing funding and private investors.

"Despite structural adjustment measures, the lack of liquidity is one of the problems which all companies encounter, notably the small- and medium-sized companies," Hatzidakis said.

Greece wants the support of Germany's state-owned KfW investment bank, the Greek minister added.

"We don't want to create just another new fund, but a fund which will really do something," he said.

The KfW is Germany's third biggest credit institute, crucial for small- and medium-sized businesses which make up the backbone of the German economy.

After a buy-back programme designed to reduce Greece's debt mountain, Eurogroup head Jean-Claude Juncker said earlier Thursdsay that a first payment of 34.3 billion euros ($44.9 billion) would be flowing to Athens "as early as next week."


© 2012 AFP

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