Greece to set up development bank to fund infrastructure projects

Greece will set up a development bank to fund infrastructure projects, start-ups, small businesses and export oriented companies, the government's economic policy council said on Friday.

The Hellenic Development Bank will be a state lender that will complement commercial banks to help fund growth and regional projects.

The bank will seek the participation of other state entities with funding capacity to take part in its share capital and collaborate with international funding institutions.

"The goal is to endow the bank with the necessary funding and assets so that it can perform its role," the council said in a statement. "Its founding will fill a gap in the country's funding gap."

Greece's economy, battered by the country's debt crisis, is struggling to recover after a multi-year deep recession.

Other EU development banks have been providing...