H Hellenic Development Bank (EAT) announced the launch of the new COVID-19 Business Guarantee Fund . The new fund will support the financing of tens of thousands of micro, small, medium and large enterprises in the country by our banking system.

Enterprise Guarantee Fund COVID-19

The COVID-19 Enterprise Guarantee Fund was established by the Ministerial Decision No.YA 2500/6/2020 (Government Gazette 1768/08.05.2020) of Deputy Minister I. Tsakiri, as a separate financing unit within the Hellenic Development Bank SA (EBA). Its purpose is to finance by means of guarantees in favour of Greek businesses.

In particular, through the Fund financial assistance is granted for the implementation of financial instruments to guarantee a portfolio of new working capital loans with a ceiling, in cooperation with selected Financial Institutions, operating in the Greek market. The guarantee relates to new loans to be granted until 31/12/2020 fixed maturity and duration up to 5 years. It covers each loan for its entire duration, until the full and complete repayment of each debt.

By 26/05/2020 the Financial Institutions (ECHOs) should have submitted their proposals to the Hellenic Development Bank. This will be followed by the signing of the relevant agreements in order to form the loan portfolio totaling 3.5 billion Euros available for businesses.

The disbursement of loans to final recipients must be completed no later than 31 December 2020. For this reason, it is recommended that small, medium and large enterprises that want to participate in the program, prepare the files and the necessary supporting documents that will certify e.g. the total turnover, the wage costs as well as the other legalization data in order to speed up the approval process.

Fund Financing

A financial contribution from the Public Investment Programme to the EBA of €1 billion is foreseen for the establishment of the Fund. In addition to the Guarantee, a grant is provided for the guarantee fee of the borrowers, budget έως 250 million. euros.

The resources of the COVID -19 Enterprise Guarantee Fund for all eligible costs are co-financed by the European Regional Development Fund (ERDF) and the Greek State, through the Operational Programme "Competitiveness, Entrepreneurship and Innovation (EPANEK)" under the NSRF 2014-2020.