A European Investment Bank loan of 150 million euros to be extended to PPC, the Public Power Corporation, will be guaranteed by the Greek government based on a decision by Alternate Finance Minister Christos Staikouras.

The loan, whose duration will be fifteen years at a fixed interest rate of 1.943 percent, will include a five-year grace period.

It will be used to finance a PPC investment plan for the expansion, upgrading and reinforcement of the country’s medium and low-voltage distribution network.

In his decision, Staikouras noted that if PPC finds itself in a position of not being able to service an installment for the loan, then the corporation will need to notify the Greek State ten days ahead of any payment date.

It has been estaminated that the public sector owes PPC about 180 million euros in overdue unpaid electricity bills, which have remained unpaid despite repeated government promises.