Piraeus Bank, EIB secure €100 million financing deal for Greek defence sector in a move aimed at strengthening small and medium-sized companies operating in defence and cybersecurity across Greece.
The European Investment Bank (EIB), the European Union’s lending institution, has reached an agreement with Piraeus Bank to channel up to €100 million in new financing to Greek defence-related SMEs. The deal, signed on Friday, is designed to improve access to capital for companies that play a growing role in Europe’s security and technological resilience.
Under the broader initiative, the EIB has committed to allocate at least €3 billion to support the EU’s defence industry, with the possibility of increasing that amount if demand from member states and lenders continues to rise.
Piraeus Bank becomes the first Greek lender to enter into such a partnership with the EIB, marking a milestone for the country’s financial sector. Speaking at a press conference in Athens, Piraeus CEO Christos Megalou said the agreement would significantly multiply the impact of the funding.
By leveraging EIB support, Megalou explained, the bank expects to make as much as €200 million available to several hundred Greek small and medium-sized businesses, particularly those active in cybersecurity and defence manufacturing.
Similar arrangements are already taking shape elsewhere in Europe. Germany’s Deutsche Bank signed a comparable agreement with the EIB in June, highlighting a wider push to involve commercial banks in financing defence-related industries.
The initiative also aligns with Greece’s long-term defence strategy. Athens has announced plans to spend more than €28 billion on arms procurement by 2035 as it modernises its armed forces, with a quarter of that spending earmarked for domestic defence companies.
Eirini Botonaki, a senior loan officer at the EIB, said the bank is continuing talks with other Greek lenders about potential agreements, suggesting that further funding channels for the sector could follow in the near future.
