Factsheet for measure
GR-2020-16/675
–
Updated
– measures in Greece
Subsidy of interest costs for performing loans
Επιδότηση επιτοκίου ενήμερων επιχειρηματικών δανείων' , Υπουργική απόφαση 10.04.2020
Background information
The Ministry of Development and Investment issued a Ministerial Decision on 10 April 2020, in order to provide interest rate subsidy of performed business loans, for 3 months (April, May, June), for the sectors of the economy that are directly affected by COVID-19 pandemic.
According to this decision, the considered businesses include players active in the tourism, transport, catering, media and entertainment sectors as well as craft-type enterprises and retail businesses. This list will be updated regularly.
Content of measure
The measure provides companies with an interest rate subsidy of the performed loans as per 31 December 2019. Eligible businesses are the ones that have been financially affected during the COVID-19 pandemic, or which saw their operations suspended under a State decision, provided that, at least, the same number of employees is retained from 19 March 2020 to 31 December 2020.
Banks have already announced that repayment of loan principal for performing as at 31 December 2019 will be deferred until 30 September 2020. This measure may be extended for further 2 months, if deemed necessary. The package of measures amounts to a total of €3.8 billion, drawing €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 circumstance.
Updates
The following updates to this measure have been made after it came into effect.
|
25 February 2021
|
By virtue of the Ministerial Decision 24101/25/02/2021 the state subsidy of the interest cost for performing loans, as at 30 September 2020, was proclaimed. Eligible are small and medium size businesses severely affected financially, as these defined by their Activity Code Number, provided they employ a maximum of 250 employees, their turnover does not exceed €50 million per year and/or their balance sheet does not exceed the €43 million per year. The state subsidy covers the months of January February and March 2021,with the applications to be concluded till 16 July 2021.
|
|
22 June 2020
|
On June 2020, the Ministry of Development on with the Decision No. 63890, extended the date of submission of applications of companies for the subsidy of interest rates of their loans until 31 August 2020.
|
Use of measure
According to a announcement of the Ministry of Development on 5 July 2021 regarding the programme "Subsidy of interest on existing SME loans affected by COVID-19.
Results of funding applications, it appears that have been approved:
-
a total number of 31,624 applications were submitted, from the starting date, corresponding to a public expenditure of €216,057,000
-
16,169 applications were submitted for a two-month extension of funding, corresponding to a public expenditure of €91,745,704.73
In the same decision is confirmed that the total amount received by each beneficiary from this financial aid measure does not exceed the €800,000, taking into account other supplementary aids received by any given company.
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
Other social actors (e.g. NGOs)
|
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
Involvement
There is no involvement of social partners.
Views and reactions
There is no available information.
Sources
-
10 April 2020: Subsidy of the interest cost for performing loans for small and medium size enterprises' (Ministerial Decision, 10.04.2020)
(www.mindev.gov.gr)
-
25 February 2021: Ministerial Decision 24101/25.02.2021
(www.taxheaven.gr)
-
22 June 2021: Ministry of Development, Decision No. 63890/22 June 2020 (Ypourgio Anaptixis, Decision No. 63890/22 June 2020
(www.espa.gr)
-
05 July 2021: Ministry of Development “Approval of applications for funding” (Egrisi aitiseon hrimatodotisis)
(www.espa.gr)
