Recovery Fund: Second disbursement worth €3.6 billion approved

The European Commission, through the Commissioner for Economic Affairs of the European Union, Mr. Paolo Gentiloni, approved the request submitted by Greece for the second payment from the Recovery and Resilience Fund (RRF), amounting to 3.6 billion euros.

More specifically, the request (subsidies: 1.72 billion euros and loans: 1.84 billion euros) was submitted on 30.9.2022, by the responsible for the implementation of the national program, Deputy Minister of Finance, Mr. Theodoros Skylakakis, after 28 planned milestones were successfully completed. Of these, 19 relate to reforms, 6 to investments, while 3 milestones – which were fulfilled earlier than the original planning – to loans.

It is noted that the regulatory reforms were implemented under the coordination of the General Secretariat of the Government under the Minister of State, Mr. Akis Skertsos. The Special Service of the Recovery Fund (EFSTA), under its Governor, Mr. Nikos Mantzoufas, monitors the implementation of the milestones and especially for those related to regulatory reforms, the responsibility lies with the General Secretariat of the Government, under Mr. Thanasis Kontogeorgis .

In terms of payments, the disbursement of resources from the Public Investment Program (PIP) amounts to 3,149,744,081 euros. In 2022 alone, it amounted to €2,843,203,079, achieving 101% of the revised disbursement target of the Medium-Term Fiscal Strategy Framework 2023-2026. The Resilience and Recovery Fund-RRF at 40% of its course, has approved 75% of the projects and disbursed 17% of the funds.

Subsidy section

Currently, 440 projects have been included in the National Recovery and Resilience Plan, with a total budget of 13.7 billion euros.

The projects fall under the four main pillars of the Plan, namely “Green transition”, “Digital transition”, “Employment – Skills – Social Cohesion” and “Private investment and transformation of the economy”.

Loans section

To date, 291 investment projects have been submitted to “Greece 2.0”, with a total amount of 10.53 billion euros (RRF loans: 4.5 billion euros, bank funds: 3.51 billion euros and equity participation of investors: 2 .52 billion euros) concerning different sectors of the economy (industry, retail trade, power generation investments – RES, telecommunications, tourism and services).

Loan contracts have already been signed for 68 of the 291 (average interest rate: 1.2% and average loan repayment period: 11 years), with a total budget of 3.22 billion euros (RRF loans: 1.20 billion euros, bank funds : 1.28 billion euros and the same participation of investors: 741 million euros).

Of the total investment projects, 167 amounting to 2.25 billion euros, come from small and medium enterprises.

On the occasion of the approval of the second payment by the RRF, the Deputy Minister of Finance, Mr. Thodoros Skylakakis, said: “2023 begins with an extremely positive news for the Greek economy. With the second payment of €3.6 billion from the Recovery and Resilience Fund, the resources flowing into Greece from this valuable development tool exceed €11 billion. It is an important breath of liquidity, given the climate of uncertainty prevailing in the global economy. The fact that the loan money comes many months earlier also has a significant fiscal benefit to the country, for which I want to thank everyone who contributed to this highly successful program. “Greece 2.0” is bearing fruit, with its implementation leading to a more extroverted, competitive and green economic model, a more durable social security network and the further digitization of the State, which facilitates the daily life of citizens.

The course of implementation of “Greece 2.0”:

➢ “Greece 2.0” was the second National Plan submitted (27.4.2021) to the EU and the third to receive its positive assessment (17.6.2021) and the approval of ECOFIN (13.7.2021).

➢ The pre-financing, disbursed on 9.8.2021, corresponds to 13% (3.96 billion euros) of the money allocated to Greece by the TAA.

➢ Greece was among the first countries to sign (21.12.2021) with the Commission the necessary Operational Arrangements and the third (after Spain and France) to submit (29.12.2021) the first payment request, complying with the Operational Settings – schedule.

➢ On 28.2.2022 the EU published its positive preliminary assessment on Greece’s first payment request.

➢ On 8.4.2022, the disbursement of the first installment took place, in the context of “Greece 2.0”.

➢ On 30.9.2022, the Greek companies submitted the second payment request from TAA, having successfully completed the 28 planned milestones.

➢ Greece was one of the first five countries to request the disbursement of the second payment from the TAA. She was, in fact, the first to submit a request for the third payment (loan program).

➢ On 25.11.2022 the EU issued a positive preliminary assessment for the request of 30 September.

➢ On 9.1.2023 the competent Committee for the EU Recovery and Resilience Mechanism approved the EU executive decision for the disbursement of 3.6 billion euros.

➢ The disbursement of the second payment will be completed within the next few days.

➢ The next payment request is scheduled to be submitted by the Greek authorities in the spring of 2023.

The 28 milestones

RES Account – Amendment of Law 4001/2011 – Entry into force of all relevant decisions, including the codes from the ministries, the Energy Regulatory Authority (RAE) and the Administrator of Renewable Energy Sources and Guarantees of Origin (DAPEEP)

RES Bill – Market reforms and simplification of licensing

Land rehabilitation (framework law)

Public transport – Entry into force of market regulation for public service obligations (buses)

Digital transformation of SMEs – Calls for proposals

Entry into force of legislation on the lifelong learning strategy

Legislation for the provision of personal assistance to Persons with Disabilities and development of the first phase of the pilot program

Independent Public Revenue Authority (AADE): Electronic cash registers and points of sale (POS) – Entry into force of legal framework

Combating Smuggling – Roadmap for Regulatory Decisions

Excess payback for green and digital SME investments

Legislation to encourage electronic transactions

Legislation to encourage business extroversion

Increasing the capacity to codify tax legislation

Public administration – Routing a performance-based pay system

Training – Judges and judicial officers

Capital markets, supervision, digitization of supervisory procedures, Capital Markets Union

Legislation on basic and applied research

Call for proposals for research centers

Commencement of construction works on E-65

Railway Sector Reform Act

Tourism development: reforms for tourist ports

Strategic investments – legislative reform

Publication of calls for proposals for the manufacturing sector

Publication of calls for proposals for industrial parks

Economic transformation in the agricultural sector – Program launch

Equity Platform Agreement

InvestEU Contribution Agreement

Signing of credits amounting to 586.4 million euros from financial institutions with final beneficiaries