Today, the Development Law 4399/2016, with a total budget of € 500 million, was published in the Government Gazette Notices for two schemes. euro.

Development Law 4399/2016

These are the "General Entrepreneurship" aid schemes, with a budget of 350 million. euros and "Entrepreneurship of Very Small and Small Businesses", with a budget of 150 million. euro.

The deadline for applications starts today, May 21st and will run until July 31st.

It is noted that as one euro from the Development Law leverages an average of three euros, with the 500 million euros it is estimated that investments of at least 1.5 billion euros will be launched. euro.

Analytically:

General Entrepreneurship

The total budget of the current scheme amounts to 350 million euros, of which 140 milliion euros they relate to grants, leasing subsidies and subsidies on the cost of employment created, and 210 million euros concern tax exemptions.

Minimum amount of investment projects

The minimum eligible amount of investment for the inclusion of investment projects in this aid scheme is set on the basis of the size of the entity, namely:

a. for large enterprises, to the amount of EUR 500 000;

b. for medium-sized enterprises and cooperatives in the amount of EUR 250 000,

c. for small enterprises, to the amount of EUR 150 000,

d. for micro-enterprises, to the amount of EUR 100 000.

Development Law - Entrepreneurship of Micro and Small Enterprises

The present Development Law stipulates that the total budget amounts to 150 million euros, of which 140 milliion euros concern grants, leasing subsidies and subsidies on the cost of employment created, and 10 million euros concern tax exemptions.

Minimum amount of investment projects

The minimum eligible amount of investment for the inclusion of investment projects in this aid scheme is set on the basis of the size of the entity, namely:

a. for small enterprises, to the amount of EUR 150 000;

b. for micro-enterprises, to the amount of EUR 100 000.

Banks, in a flexible way, where possible, to give loans quickly

Banks should not exhaust today the formal letter of the law and rigour but in a flexible way, where of course possible, give loans quickly, asked the Minister of Development and Investments Adonis Georgiadis announcing the measures to restart the economy.

He announced that the bill on microcredit will be put to consultation in the near future, so that, as he said, other businesses that do not have the same opportunity as the most economically healthy companies will gain access to a first working capital.

He also announced that the government is creating a Liquidity Observatory, which - as he said explaining its purpose - will monitor "and we have already started it first but it will be done in a much more institutional way" the course that the banking system provides loans to companies in the country. The speed and to which businesses this money goes so that they can continue to operate unhindered.

Regarding the functioning of the banking system, the minister noted:

"I fully respect the independent operation of the banks. And of course we all understand that banks must have banking criteria that will protect depositors and protect their shareholders.

But at the moment I want to encourage all bank executives and all bank managements not to exhaust their rigour or bureaucracy on these financial instruments today.

Already, we, by decision of the Development Bank, have reduced the initial supporting documents provided for by our laws and decisions below half in order to be able to make the access of businesses to these financial tools much easier and much faster.

I would therefore like to encourage all bank executives - who I know that together with us have the same anxiety to keep Greek businesses and their own customers and their own friends and partners alive to manage to get through this crisis - not to exhaust today the formal letter of the law and rigour but in a flexible way, where of course it is possible, to give loans quickly because our economy is in dire need of providing liquidity as quickly as possible in order to preserve jobs, to enable businesses to meet their short-term obligations and to implement all the investment plans that we now encourage them to do faster than ever".

Ministry's Objectives for Financial Instruments

The ministry's goal is not to leave any business behind, the minister stressed. "Our goal is to find solutions for the last company that really wants to fight the battle and that is ready together with us to give a common fight to keep Greece standing in this difficult 2020. We will be on the side even in the problem of each of you individually." Georgiadis concluding his speech.

Also, the Ministry of Development and Investments, as stated yesterday by the Minister of Development and Investments Adonis Georgiadis, in the joint interview with the Ministers of Economy, Labor and Tourism, where the government's overall plan for labor, the economy and tourism was presented, activates Financial tools that will give liquidity of € 15 billion. the euro in the real economy.

Specifically, the Development Law, according to the Minister:

• The program of the development bank TEPIX II has already been activated, through which loans of a total amount will be made available €2 billion euro. This program was restarted yesterday with an increased budget and as of 12 noon when the platform opened, 40,000 new applications were submitted for the provision of a working capital loan with 100% interest rate subsidy in the first two years.
• In early June, a €7 billion programme will be activated through which banks will provide loans to businesses with 80% of the capital guaranteed. The call for banks to participate expires on May 26. As Mr. Hatzidakis said, Georgiadis this tool was designed and implemented within 50 days in cooperation with the EU while under other circumstances it would take 7-12 months.
• A series of financial tools have been designed to lend to development projects through which €5 billion of funds are expected to be mobilised. The total amount of funds allocated by the state for these tools amounts to 1.28 billion euros.

In addition, the Development Law 4399/2016 will finance large investments with additional funds of € 2.7 billion. over €2.5 billion euros already allocated to major projects.

As the Minister said, in this way, the Files of all the companies that have submitted applications and are estimated at about 2,000 are expected to be approved.

Since March, 4 PPP projects have been approved with a budget of EUR 350 million. while a new call for projects of an additional €1.5 billion is expected to be issued in June. euro.

In cooperation with the co-competent ministries, 40 major projects totalling €6 billion are expected to be promoted. euro.