Piraeus Bank and the European Investment Bank (EIB) have signed a €100 million funding agreement to support small and medium-sized enterprises (SMEs) operating in Greece’s defence and cybersecurity sectors, according to a Reuters report.
The deal marks the first time the EIB has intermediated defence-focused financing in Greece, with the funding channelled through Piraeus Bank. The initiative is part of the EIB’s broader Pan-European Security & Defence programme, which has been expanded to €3 billion to strengthen the European Union’s defence industrial base.
Under the arrangement, the initial €100 million is expected to be on-lent primarily to SMEs and mid-cap companies active in strategic segments of the defence ecosystem. With anticipated leverage from private capital and extended lending terms, the total mobilisation of investment could reach up to €200 million for targeted beneficiaries.
Piraeus Bank’s CEO, Christos Megalou, said the agreement would enable the bank to extend financing to several hundred Greek defence and cybersecurity firms, supporting domestic innovation and competitiveness. The move aligns with Greece’s broader objective of enhancing its industrial capacity in strategically important sectors, including dual-use technologies and advanced security systems.
The EIB’s participation is also intended to reduce perceived risks for investors and improve financing conditions — such as lower borrowing costs and longer maturities — for companies in an industry that has traditionally faced financing constraints due to its specialized nature.
