TEPIH III: 2.1 billion euro loans for SMEs with interest rate subsidy for two years
The loans that will be granted to small and medium will total more than 2 billion euros href=”https://espa.io/category_of_beneficiary/epixiriseis-epidotisi/” target=”_blank” rel=”noopener”>enterprises through the new Entrepreneurship Fund III (TEPICH III). In fact, a two-year interest rate subsidy is provided for the loans.
The financing agreement for the creation of the new Portfolio Fund was signed by the Deputy Minister of National Economy and Finance, Nikos Papathanasis and the president and CEO of Hellenic Development Bank -HDB, George Zavvos.
It should be noted that the manager of the Fund will be the HDB which, within the immediately following period, will sign co-investment and cooperation agreements with the commercial and cooperative banks from which the loans will be granted.
Goal of the Block III
The objective of the Fund is the creation of financial instruments for the support and development of small and medium enterprises, small enterprises medium capitalization, medium capitalization enterprises capitalization and start-ups, as well as facilitating their access to sources of financing.
The initial budget of the Fund amounts to 500 million euros and with leveraging through the banking system, it is expected to create a portfolio of loans amounting to 2.1 billion euros.
It is noted that TEPIX III is a portfolio fund, in which the Guarantee Fund (amounting to 300 million euros) and the Co-financing Fund (amounting to 200 million euros) will operate in principle, while TEPAX II was only a fund for the provision of co-financed loans. TEPIX III also provides loans with a two-year interest rate subsidy, both for working capital and for investment plans.
The TEPIX III is part of the implementation of the “Competitiveness” Program of the NSRF 2021/27 and is co-financed by the European Regional Development Fund (ERDF).
Nikos Papathanasis, deputy minister of national economy and finances
“Supporting entrepreneurship, with the aim of increasing GDP and increasing incomes for all our fellow citizens, is the first priority of the government’s economic policy. The Entrepreneurship Fund, with a budget of 500 million euros, is expected to create a loan portfolio of 2.1 billion euros. In this way, the financing of investment funds and working capital is further strengthened, as well as the possibility of guaranteeing SMEs, resulting in an even greater expansion of the perimeter of benefiting healthy businesses.
With plan and determination, systematic and coordinated work, realism, fiscal seriousness and social sensitivity, we put into practice everything we committed to. Giving new dynamic impetus to a more productive, innovative, extroverted and fair economy. An economy that grows andcreates additional jobs“.
Georgios Zavvos, president and managing director of the Hellenic Development Bank
«With the advent of the new year we welcome and launch the new Portfolio Fund named “TEPIX III Portfolio Fund” with a budget of 500 million euros expected to create a loan portfolio of 2.1 billion euros. The Hellenic Development Bank as the Bank of small and medium enterprises implements with targeted financial tools the ambitious development program of the government and proves once again that it responds directly to the new increased needs of small and medium enterprises. The successful TEPIX program is now entering its third cycle offering loan guarantees and interest rate subsidies, in order to make financing of small and medium enterprises from the banking system even more accessible. Within the next few days, the Invitation for Expression of Interest will be published for the Financial Institutions wishing to participate in the Fund“.