The European Investment Bank (EIB) and Greece’s Piraeus Bank have agreed a €100 million financing package to support small and medium-sized enterprises in the Greek defence and cybersecurity sectors.

The scheme comes as Greece plans to spend more than €28 billion on arms procurement by 2035, with around 25% earmarked for domestic companies.

Under the agreement, the EIB will provide long-term funding to Piraeus Bank, which will lend directly to eligible defence and dual-use technology firms, offering longer maturities and lower borrowing costs than standard commercial loans.

Greek officials said the initiative aims to strengthen domestic industrial capacity and supply chains as defence spending increases across Europe.

The deal is a notable example of the growing role of EU-backed bank financing for defence-sector SMEs, particularly in countries with less developed capital markets.