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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure GR-2020-12/674 Updated – measures in Greece

New loans through the entrepreneurship fund of the Hellenic development Bank

Νέα δάνεια μέσω του Ταμείου Επιχειρηματικότητας της Ελληνικής Αναπτυξιακής Τράπεζας', Ανακοίνωση, 18.03.2020

Country Greece , applies nationwide
Time period Open ended, started on 18 March 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Access to finance
Author Penny Georgiadou (INE GSEE)
Measure added 16 April 2020 (updated 16 November 2021)

Background information

The Greek government announced on 18 March 2020 the availability of new loans for the businesses affected by COVID-19 pandemic, with a 100% interest rate subsidy for two years. The Hellenic Development Bank's Entrepreneurship Fund will be simplified and its resources increased by €250 million to lend the above mentioned loans. The measure is aimed to provide economic aids to the companies most affected by the COVID-19 outbreak, to support them in staying afloat.

Content of measure

The Hellenic Development Bank's Entrepreneurship Fund will be simplified and its resources increased by €250 million to lend new loans to companies affected by COVID-19 with a 100% interest rate subsidy for two years. Businesses that have been financially affected as per their Activity Code Numbers (ACN), or their operation has been suspended under a state decision are eligible to apply. This is one, among other measures amounting to a total of €3.8 billion - €2 billion from the state budget and an additional €1.8 billion from the Special Purpose European Fund set up to deal with the COVID-19 exceptional circumstances.


The following updates to this measure have been made after it came into effect.

28 May 2021

The granting of loans to the enterprises for Working Capital with an interest subsidy due to the COVID-19 pandemic, by the "Hellenic Development Bank -HDB", is a sub-programme 3 of "Business Financing - TEPIX II" and is an ongoing project. The deadline for signing the loan agreements was until the resources of the programme will be exhausted.

The capital of the loan is covered by 60% from the Banks and by 40% from the HDB and it is granted after evaluation, to companies that have suffered suspension or restriction of their operation due to the COVID-19 pandemic.

The main criterion for obtaining the interest subsidy for two years is the maintenance of jobs during the same period (and with a reduced interest rate of 40% for the remainder of the term of the loan).

The amount of the loan per company must not exceed the €500 million. The duration of each loan is defined from 24 to 60 months from the disbursement (one-off or first instalment) of the loan. A grace period of 6 to 12 months can be given. During the grace period, only the interest can be paid. Applications for the first implementation cycle of the programme were available from 20/5/2020 to 28/5/2020. The measure is funded from European and national resources.

10 May 2021

The Hellenic Development Bank announced on 10 May 2021 the start of a new round of providing investment loans for Very Small, Small and Medium Enterprises through the Entrepreneurship Fund II.

The purpose of the new funding round is to support the implementation by SMEs of investment plans to take advantage of the new favourable environment of restarting the economy, after the experience of the pandemic crisis.

The amount of investment loans can range from €25,000 up to €1,500,000, with their repayment period ranging from 5 to 10 years, with the possibility of a grace period of up to 36 months.

The Deadline for completion of disbursements is within 24 months from the signing of the contract, either in one-off or in installments and in any case no later than 31 October 2023.

The loans will be granted by the 10 cooperating banks, on very favorable terms to businesses as the cooperation with the Hellenic Development Bank offers a grace period of up to 2 years and the interest rate of each loan is significantly reduced as compared to the respective official bank financing.

06 May 2021

The deadline for signing the loan agreements is until the resources of the programme will be exhausted. Until May 2021 it is unknown if this special form of loan will continue in the future.

01 September 2020

The HDB (Hellenic Development Bank), due to increased demand and with an amending decision in 1 September 2020, announced the continuation of the support measure of the working capital interest subsidy, as “Subprogramme 4 of the Business Financing Action of TEPIX II”.

The programme concerns “co-investment” loans (having a subsidy rate of 5% covered by HDB and 95% by the Banks) and with an interest rate subsidy for two years. Subprogramme 4 concerns only companies that have already applied for loans under the Sub-programme 3, but their applications didn’t approved due to lack of resources.

To this end, an additional amount from TEPIX II resources of €180 million was approved. After this, the total amount of the co-invested HDB -Bank funds for all the four (4) sub-programmes reached the €2.3 billion (HDB: €1.003 billion – Banks: €1.297 billion).

Use of measure

According to a Press publication (newspaper “Kathimerini”, 19 August 2020), 11,800 companies had already been loaned through the TEPIX, while another 1,000 applications were pending and expected to be loaned in the near future, more than the programme estimated budget coverage, which was totally €1.8 billion. The average loan provided through the TEPIX was estimated at €128,000, when the maximum loan amount was €500 000, confirming that the TEPIX operated as an emergent tool at the beginning of the crisis in order to cover immediate liquidity of the businesses. Also, according to the Bank of Greece, the disbursements of bank loans under the auspices of the co-financing programme (TEPIX II) approached the €1.8 billion.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
EU (Council, EC, EP)
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Unknown


There is no involvement of social partners.

Views and reactions

No involvement.


  • 19 March 2020: "Coronavirus. Answers to all measures. Public, EOPYY, employees, businesses" (
  • 04 May 2020: Working capital with a two-year interest subsidy due to the COVID-19 pandemic from TEPIX II (Κεφάλαιο κίνησης με διετή επιδότηση επιτοκίου λόγω πανδημίας COVID-19 από το ΤΕΠΙΧ ΙΙ (
  • 04 May 2020: New loans with interest subsidy (Νέα δάνεια με επιδότηση τόκων: Τα πέντε στάδια από την «αίτηση» έως την εκταμίευση του δανείου (
  • 19 August 2020: Rain of requests for loans with the guarantee of the State (Βροχή αιτημάτων για δάνεια με την εγγύηση του Δημοσίου (
  • 01 September 2020: HDB Modify Invitation (ΕΑΤ Τροποποίηση πρόσκλησης, 1 Σεπτεμβρίου 2020 (
  • 17 April 2021: Who took out and how many loans with a government guarantee (Ποιοι πήραν και πόσα δάνεια με εγγύηση του δημοσίου (
  • 10 May 2021: Ministry of Development Press Release New Investment Loans Entrepreneurship Fund II (Υπουργειο Αναπτυξης Δελτιο Τυπου Νέα Επενδυτικά Δάνεια Ταμείου Επιχειρηματικότητας ΙΙ (


Eurofound (2020), New loans through the entrepreneurship fund of the Hellenic development Bank, measure GR-2020-12/674 (measures in Greece), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.