The banking system of the country has shown great participation in order to start immediately the implementation of the 4 new programmes of the Hellenic Development Bank - HDB that support, with low-interest financing, small and medium entrepreneurship.

The 4 new flexible financial products (3 co-financed and 1 Guarantee) ensure particularly favourable financing conditions for SMEs.

The Development Law Financial Instrument (DeLFI) Guarantee Fund

It provides guarantees for long-term and short-term loans for the implementation of investment proposals submitted under the new development law N.4887/2022. DeLFI provides a guarantee of 80% per loan and in total loans will be made available in the amount of 500 cm. euro.

12 banks responded to the call of the Hellenic Development Bank - HDB and applied for loans with a total budget of 932 million euros, which is currently twice the available resources.

• It is worth noting that DeLFI's funds come from the repayments of the Entrepreneurship Fund I (EBF I).

This highlights the importance of the financial instruments as a revolving funding mechanism with a multiplier effect on the economy, as NSRF 2007-2013 resources, after having financed a significant number of enterprises, return to the market to support new businesses.

The Co-investment Portfolio Fund (called the Business Growth Fund)

Leverages public resources, in cooperation with the European Investment Bank (EIB) and through the participation of Banking Institutions, increases available loan capital to more than €2 billion euros.

The first phase of the implementation of the Portfolio Fund has already been activated with the publication of a call to the Banks for three (3) new funds to channel up to EUR 1.35 billion of investment loans and working capital into the market, while additional resources of EUR 35 million euros is expected to cover interest subsidies on the loans granted.

• Important will be the alleviation of borrowing costs for businesses through these programmes, since each loan will be co-financed by 40% from the public resources of these Funds, and will be provided interest-free, while for the remaining 60% to be financed by the Bank, the cost of financing will be reduced by 3% for the 2 first years of the loan with the application of the partial interest rate subsidy (subject to conditions).

This results in an overall reduction in borrowing costs that can in some cases exceed 75%.

There was a great interest from Credit Institutions for their participation in these 3 new programmes, as 13 Banks submitted proposals with competitive interest rate offers and reduced collateral requirements.

Their participation in the loan funds in this first phase of the programmes is expected to reach 800 million. euros.

The 3 new co-financing programmes immediately available of the HDB

In detail the 3 new readily available HDB co-financing schemes will provide:

I. Green Co-Financing Loans (Green Co-Financing Loans)

Total available loan capital of up to 500 million for investment financing for SMEs implementing investment projects energy upgrade investments, developing green service providers, developing low-emission car charging networks (electric or hydrogen) and investing in renewable energy sources, with the ultimate aim of reducing emissions and protecting the environment. The duration of the loans will be from 2 to 10 years and the amount will range from EUR 80,000 to EUR 8,000,000. There is a possibility to use a grace period for the first 2 years.

ΙΙ. Digitalization Co-Financing Loans (Digitalization Co-Financing Loans)

Total available loan capital of up to 250 million euros for investment financing for SMEs, for the implementation of digitisation and digital upgrading investments of their operations/activities, aiming at increasing their productivity, their growth and the creation of new high value-added jobs. The duration of the loans will be from 2 to 10 years and the amount of the loans will range from €25,000 to €1,000,000. A grace period can be used for the first 2 years.

ΙΙΙ. Business Liquidity Co-Financing Loans (Liquidity Co-Financing Loans)

Total available loan capital of up to 600 million. euros for working capital financing to SMEs. The interest rate subsidy is applicable only to companies that have not received financing/assistance from an HDB scheme before.. The aim of the loans is to facilitate the smooth operation of the business transaction circuit and to address the increased energy costs under the current exceptional market conditions (increased energy costs, raw material prices, inflationary pressures) and to protect jobs, so that they can successfully meet the challenges of modern entrepreneurship. The duration of the loans will be from 2 to 5 years, with a loan amount of EUR 10,000 to EUR 1,500,000. There is a possibility to use a grace period for the first 2 years.