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-2020-14/676 – Updated – measures in Greece
|Country||Greece , applies nationwide|
|Time period||Temporary, 03 April 2020 – 25 April 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Penny Georgiadou (INE GSEE)|
|Measure added||16 April 2020 (updated 09 August 2021)|
The Joint Decision of the Greek Ministries of Finance, Development and Investment of 2 April 2020 sets a €1 billion aid scheme to support companies affected by the COVID-19 outbreak. The scheme was approved under the State aid Temporary Framework adopted by the European Commission on 19 March 2020, as amended on 3 April 2020. The goal of the measure is to sustain companies which saw their business affected and impaired by the provisions adopted to face the pandemic and by their consequential socio-economic effects.
(JMD, OJ 1135/Β/02.04.2020)
The measure provides companies with a cash advance financed by the Greek State amounting to €1 billion in total. The funds will be provided via the 'taxis' information system as a tax-free amount, which will not be able to be offset or confiscated.
This measure is addressed to small and medium enterprises of all economic sectors, that have their seat or permanent establishment in Greece, and employ at least 1 and a maximum of 500 employees, in order to deal with the specific issues that such enterprises face in terms of accessibility to credit. Private companies (general and limited liability companies, limited liability companies and private capital companies) that do not employee personnel, regardless their sector, are also eligible for the return on their advance payments.
The advance will be refunded to the Greek State within the next five years, either in total or partially, depending on the viability of each enterprise. The first year is a grace period and there is no obligation to any repayment, which will take place in equal monthly installments within the remaining four years by applying an extremely low interest rate.
According to the data of the Ministry of Finance, until March 7, 2021, the results of the measure show that:
The total amount given as support for the 6 rounds is estimated at €7.3 billion. Regarding the number of beneficiaries and businesses, and up to the fifth round of the measure, they were 544,591, of which a large percentage participated in 2 or more rounds.
For the 7th round of the Reimbursable Advance, the estimates of the Ministry of Finance, refer to an amount of €200 million to be given in order to increase the total number of beneficiaries up to 300,000 as is the target, while the total amount distributed to reach €1 billion.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
EU (Council, EC, EP)
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:
There is no involvment
The employers organizations of SMEs (GSEVEE and ESEE) criticized the content of the repayable state cash measure and asked for the introduction of different eligibility conditions in the programme (for example the abolition of limits as concern the preservation of the 50% of the employees, the restoration of electronic platform malfunctions, the extension of time limits for inclusion in the programme) and generally the adoption of additional measures to support enterprises.
Eurofound (2020), Repayable state cash advance aid scheme for companies with less than 500 employees, measure GR-2020-14/676 (measures in Greece), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/GR-2020-14_676.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.