By the end of next week, the New Cycle of Development Law programs (Law 4399/2016) is expected to be announced.

Within the same period, the provisional list of beneficiaries who have submitted applications under the first round of calls activated in October last year is expected to be published. The ultimate goal is to have the first disbursements approved by 31/12/2017.

New cycle of Development Law programs - Four programs - schemes will be included, namely:

a) Reinforcement of Mechanical Equipment

b) General Entrepreneurship

c) New Independent SMEs

(d) Major Investments

The total estimated budget (public expenditure) is calculated at 550 million euros, however, the largest proportion (around EUR 400 million) will be for tax-exempt aid.

We would like to remind you that four other schemes-schemes have been designed under the new development plan, but it is not known exactly when they will be announced. They are the "Innovative Investments for SMEs", the "Synergies and Networks (Clusters)", the "Integrated Spatial and Sectoral Plans" and the "Financial Intermediaries - Holding Funds".

In the expected new cycle, the deadline for applications for the programmes: "General Entrepreneurship", and "New Independent SMEs" will remain open for about three months. On the other hand, for the programmes "Mechanical Equipment Support" and "Major Investments", the application period will remain open for approximately six months.

While in the previous cycle of the "Major Investments" program no application was submitted, the Ministry of Economy and Development re-tenders it. It considers that interest will be expressed at this stage. In fact, there are specific considerations for modifications to the regime, in order to make it more attractive for large investments.

Although most of the aid envisaged is tax exemptions which can be spread over 15 years, the Ministry is also preparing for a significant cash supply. For this reason, it is in advanced contacts with the European Investment Bank. The purpose is to provide a loan that will be allocated for the repayment of investment projects that are part of the new development law.

Assessment of the first cycle

In parallel with the preparations for the launch of the new round of notices, the evaluation of the proposals submitted in the previous one is at the final stage, in order to establish the provisional list of beneficiaries.

According to the estimates of the Ministry of Economy and Development, out of the 821 investment projects that applied for aid in the first cycle, about 650 meet the conditions for inclusion in the law and therefore, if their implementation begins, they will be strengthened.

Under the first call, the total budget of the 821 projects amounted to €2.21 billion. with most applications being submitted under the General Entrepreneurship programme. In particular, 496 investment projects were submitted, with a total budget of €1.55 billion.

In the "New Independent SMEs" programme, 271 investment funds with a total budget of EUR 485 million were submitted for support. euro.

In the "Mechanical Equipment Aid" programme, 54 investment projects with a budget of ECU 170 million were submitted for aid. euro.

On the other hand, no investment proposal was submitted to the "Major Investments" program.

It is worth noting that a large number of investment projects (41.3%) applied for a tax exemption. The remaining investment projects applied for a grant or leasing or wage cost support. 65% of investment projects and 51.3% of the total amount of investments are in industry while investment projects in tourism constitute 35% of investment projects and 48.7% of the total amount of investments.