Dep. Fin. Min.: The implementation of “Greece 2.0” will bring permanent growth

“Reforms are progressing rapidly, which are an integral part of the Plan and the implementation of which will increase the competitiveness and productivity of the Greek economy and will lead to a permanent acceleration of its growth in the coming years,” Deputy Minister of Finance Thodoros Skylakakis said in a statement to state news agency AMNA, referring to the implementation of the programs of the Recovery and Resilience Fund “Greece 2.0”.

At the same time, the Deputy Minister notes that a number of investments have already been included in the Recovery and Resilience Fund “Greece 2.0”, the implementation of which is in full swing. The first projects and interventions have already started, such as the north axis of the E65 highway, the “Exoikonomo” program for household energy revamping, with tens of thousands of applications for energy upgrades that have been submitted and the granting to students (and soon teachers) with digital tools ( tablet & laptop), which are a cornerstone for the transition of education to the digital age “.

Referring to what will happen in the near future, Mr. Skylakakis noted,  that “in the next few months, large investment subsidy programs for small and medium enterprises for energy savings, digital upgrades, but also programs for agri-food, processing and tourism enterprises will begin.”

Regarding the loan arm of “Greece 2.0”, which according to the Ministry of Finance is also progressing rapidly, Mr. Skylakakis stated that “after the business agreements of the Ministry of Finance with eight credit institutions (6 domestic and 2 international), 1.57 billion euros are directly available to finance new investments in the country, which will create new jobs. Banks have already issued invitations to investors inviting them to present investment plans for financing and to reap the benefits (eg fixed lending rate of 0.35% for the first wave of loans, repayment period up to 15 years, etc.) of the National Recovery & Sustainability Plan “Greece 2.0 ″”.

Regarding the minimum interest rate for loans, which is fixed at 0.35%, it is noted that this term, in relation to the interest rate, applies to all loan agreements concluded between the banks participating in the Program and the eligible investors. It is clarified that the interest rate may, as the case may be, be higher.

The credit institutions participating in the lending arm of “Greece 2.0” are: European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), National Bank, Piraeus Bank, Alpha Bank, Eurobank, Optima Bank and Pancretan Bank.

It is pointed out that in the near future, a new call for expressions of interest is expected to be issued for participation in the Recovery and Sustainability Fund of more banks.

It is noted that the first 500 million euros, concerning the loan arm of “Greece 2.0”, will be managed by the European Investment Bank (EIB), supporting actions which fall under the following five pillars, which constitute the loan arm of the Recovery Fund:

1. Green transition,

2. Digital transformation,

3. Innovation, Research & Development,

4. Development of economies of scale through partnerships, acquisitions and mergers and

5. Extroversion.

EIB experts (experts in technical, financial and environmental matters) will evaluate the relevant investments, which will be financed by the Recovery and Sustainability Fund and from the Bank’s own resources, on equal terms (pari passu).

It is recalled that the EIB will manage, in total, funds of up to 5 billion euros, which can lead to investments of more than 10 billion euros, in the framework of “Greece 2.0”, as provided by the relevant, at European level, agreement with the Ministry of Finance.

In total, the loan arm of “Greece 2.0”, amounting to 12.7 billion euros, given the favorable interest rate on loans to companies, is estimated to lead to a significant increase in private investment in the coming years.

In particular, an investment plan may receive up to 50% of its investment costs from the resources of the Recovery and Resilience Fund, with a fixed interest rate of 0.35%, as stated in the relevant decision.

According to the Ministry of Finance, “the favorable interest rate brings to Greek companies a cost of money, which is competitive with large European economies. Therefore, a deterrent – until recently – factor for the implementation of investments is being normalized “.