European Commission boosts Greek market liquidity

The European Commission gave a fresh boost to the Greek economy on Friday by approving a lifeline of 2 billion euros for the country's businesses.

Greece had requested support in the form of loan collateral that will be granted to local banks through the Hellenic Development Bank, so as to cover loans for corporate liquidity.

The program, according to a Commission statement on Friday, is open to all Greek enterprises except for banks and businesses in the agricultural and fish farming sectors that are not included in the European Regional Development Fund.

The government measures cover loan collateral for working capital for a limited amount and period. The risk being undertaken by the state does not exceed 80 percent of the loans guaranteed, while the collateral may not cover any more than 40 percent of the total volume of loans each bank issues.

The...