By the beginning of February, the banks contracted with the Ministry of Finance will address a public invitation to investors, in the context of their participation in the lending arm of the Recovery Fund.
It is essentially an information to the business world of the country, which will provide brief information on how the European package works, but also on the criteria for selecting beneficiaries and projects.
This invitation is a prerequisite for starting the whole process. Then each bank will be able to apply for the withdrawal of the first funds.
According to a banking source, in the first phase, 200 million euros will be deposited in the accounts of the four big banks at the Bank of Greece.
These will be the yeast for the first inclusion of projects in the Recovery Fund. From there, depending on the rate of resource depletion and the demand for investment by companies, the next installments will be requested.
A total of 12.7 billion euros are available, which together with bank leverage can lead to investments of even more than 30 billion euros in the country over the next five years.
It is noted, however, that even if this first money is credited to the banks, something that is expected to happen in February, the operation of the electronic application platform will be needed to launch the program.
It is in the implementation phase and is not expected to be ready before the end of the first quarter.
In combination with Development
The banks have also asked the government to clarify the framework for a company to join a Recovery Fund and a Development Law funding scheme at the same time.
According to a bank executive, “the landscape on this issue remains murky, despite assurances that investment co-financing from both development programs is possible.”
In this context, the banks have already been asked to have a meeting with the executives of the Ministry of Finance to determine the whole process, so that there are clear and detailed instructions on how a company can join both Development and Recovery Fund at the same time.
In addition, it has not yet been clarified what possibilities the companies that have already joined the Development Law since last year, have in terms of their participation in Recovery Fund actions.
Subsidies and lending
On the other hand, the first contacts were made in the previous days between FinMin and banks for their participation in subsidy programs that will be activated with the resources of the Recovery Fund.
The aim of the government’s financial staff is to combine the funds of the companies with bank loans to finance the projects with larger amounts, as is the case, for example, with the Savings.
However, according to information, from the first discussions there was no agreement, as the average amount of the loan needed to implement a specific program was very small.
Thus, the banks did not proceed with these discussions. It is noted that these programs will subsidize projects related to digitization, the primary sector and green investments.
Latest News
Developing the Blue Carbon Economy in Greece
Can Greece make money by protecting its marine environment?
EIB Appoints Greece’s Ioannis Tsakiris as New VP
Ioannis Tsakiris started the new role May 1 after spending 15 years at the European Investment Fund (EIF) and serving as Greece’s Deputy Minister for Development and Investments
Two Greek Beaches in Top 50 in the World
Both Greek beaches were on the list of the best beaches in Europe too
Eurostat: Greece 20th out of 26 European States in Hourly Average Wage
According to figures released by Eurostat, the Benelux Grand Duchy of Luxembourg, one of Europe’s hubs for finance, is in first place
Greek Property Renovation Surge amid Economic Constraints
This has led to a notable escalation in renovation costs, with average prices per square meter exceeding previous norms and reaching even 1,000 euros in premium locations
RRF: Additional €5.1bln Funds for Subsidies to Greece in 2025
By April 22, funds totaling 5.75 billion euros had been transferred for approved projects of the Recovery Fund to entities within and outside the general government and final recipients
OECD: Greek Economy Resilient with 2% Growth Forecast for 2024
However, the OECD highlights challenges including the need to enhance productivity and fiscal adjustment due to high debt levels.
Challenges and Delays in Greece’s Hydrocarbon Exploration
Sources disclose that the petroleum companies holding the concessions are seeking partners to jointly invest and share the costs of exploration and drilling.
Greek Beach Visitors Can Report Violations on New ‘MyCoast’ App
Greek authorities hope the newly-launched, free ‘MyCoast’ app will help clamp down on public beach violations
BoG Figures Confirm Banner Year for Greek Tourism in 2023
20.6 billion euros in related revenues topped the previous year’s figure by 16.5%