The continuation of the support measures as well as new measures to support the economy and the employees affected by the coronavirus pandemic was announced yesterday by the government's financial staff.

They concern a second wave of measures, which aims to return to normality and extends an additional safety net to all Greek citizens.

Announcements on new support measures in May

Among others, based on the announcements of ministers Christos Staikouras, Giannis Vroutsis and Adonis Georgiadis:

• Protection extended for 3 months until the end of July 2020. The potential beneficiaries are estimated at 90,000 beneficiaries and not just 3,000 who applied. In addition to the extension, the new system strengthens the consistent borrowers affected, the total before and after 2018, while limiting the risk of a new generation of bad loans covers multiple borrowers, but for the first time also the fully consistent ones so far
• The special purpose compensation will continue for those employees who remain in a temporary suspension of their contract, depending on how long the suspension will last. Companies that make use of this measure are obliged not to reduce their staff in order to ensure the preservation of jobs and the type of employment contract.
• The suspensions of certified debts to the tax office and insurance funds continue to exist, in the month of May, for all the businesses affected to date.
• The 40% discount on the rent of the business, as well as the first residence and the student residence of the children of its employees, continues to exist in May, for all the businesses affected to date.
• For businesses that will open in May, this measure will not be repeated for the next few months. This may also mean that those who remain closed will also have a decrease in June as well.

Also:

• A second repayable advance is launched within the next two months, where all businesses can participate
• Targeted sectoral policies are implemented in May, in sectors that suffer the greatest economic blows, such as, indicatively, tourism, transport and parts of the primary sector.
• The total cost of the measures in place or to be implemented in the near future amounts to around EUR 12.5 billion. and their added value to EUR 17.5 billion. euros
• In this context of measures, new provisions will be added in the near future, which are also related to the use of European funds, such as:
  • boosting employment through the European SURE Programme,
  • the use of guarantee instruments of the European Investment Bank;
  • the new subsidy framework for borrowers affected by the coronavirus;
  • strengthening sectors of the economy, where necessary, by the end of the year.

New funding programs and two new notices of development law schemes

Activation additional funding programmes to boost the liquidity of businesses and relaunch investment plans on the one hand through two new cycles of notices of the Development Law 4399/2016 and on the other hand by the full coverage of applications already made, provide for the new measures to stimulate economic activity, which were presented today by the Minister of Foreign Affairs. Development and Investment Adonis Georgiadis.

Boosting business liquidity

By mid-May at the latest, the second tool designed through the Development Bank for providing loans for working capital guaranteed in the loan amount up to 80% for 25% of the annual turnover or double the annual payroll in each business (and large over 250 employees).

In fact, the Minister stressed that the approval of the Commission foran increase in the programme's budget by ECU 250 million; euros "in order to reduce all the cost of procurement, which will be borne by the Development Bank," mr. Georgiadis

In terms of first financial instrument through the Development Bank, which has already been activated and concerns working capital loans with a two-year subsidy of 100% of interest rates The Minister revealed that within three days, 8,336 loan applications from SMEs have been submitted to the cooperating banks and the total amount of 1.286 billion euros has already been committed for disbursement. This programme, he said, will continue until its resources are exhausted. "But if necessary we will look for more Chapters," he said.

For all the above, the Minister clarified that the commitment to maintain jobs for the next two years applies to businesses.

Also in progress is the interest subsidy program of the updated business loans for the months of April, May, June with the possibility of extension for July and August. In this program, 5,205 applications of companies with 73,379 employees have already been approved, while another 25,000 or so are being processed.

2 new Development Law notices next week

Along with the financial tools, the services of the Ministry of Development in the midst of quarantine, as Mr. Georgiadis, proceeded to 151 decisions to integrate investment proposals into two schemes of the Development Law for which the deadline for submitting applications had been completed (Entrepreneurship of Very Small and Small Enterprises - 1st Notice and General Entrepreneurship - 3rd Notice).

In fact, he revealed that the ministry is in consultation with the Commission in order to expand the two programs and essentially cover all the applications that have been submitted in order "to give all businesses the incentive to implement their investment plans in these difficult conditions and to cover a part of the lost economic cycle". According to the minister, the request of the Greek side is the status "Entrepreneurship of Very Small and Small Enterprises" of the Development Law to be extended from EUR 150 million to EUR 150 million. at €1 billion and the "General Entrepreneurship" scheme of the EUR 350 million at €1 billion also.

At the same time, Mr. Georgiadis announced the launch of two new call cycles of the Development Law for the "Entrepreneurship of Very Small and Small Enterprises" scheme with a budget of € 150 million. and for the "General Entrepreneurship" scheme with a budget of EUR 300 million. euro. The relevant JMD is to be signed at the Ministry of Foreign Affairs. Finance and its publication is expected next week.

Other exceptional new aid measures

One billion. euro repayable advance in the first phase - a second is coming

As announced by the Deputy Minister of Fiscal Policy Theodoros Skylakakis the government is giving one billion euros of repayable advance in the first phase. There will be a second phase of repayable advance

Beneficiaries of the first phase are those who submitted a relevant application and stopped operating or are affected: Decrease in turnover by 6.7% in the first quarter compared to the average of the corresponding quarters of the previous three years. For double-entry companies, a 20% reduction in turnover is needed. All those that have been closed are beneficiaries.

How much money will businesses get from the repayable advance from the new measures

Some minimum amounts are foreseen:

• 2,000 euros without employees
• 4,000 euros with 1 to 5 employees
• 8,000 euros for 6-20 employees
• 15,000 euros for 21-50 employees
• 30,000 euros with more than 50 employees

The maximum limit does not exceed 350,000 euros for those with 250 people.

Businesses that did not apply by the 1st submission deadline can submit their application in phase 2. The repayment will be made from 1/1/2022 in 40 equal installments and the amount will appear in the debts on Taxisnet.

Interested businesses will be able to submit their credit application within the next 10 days, when the data will be available. The base rate will be below 1%.

Affected businesses that can apply include medical procedures.