Sunday November 23, 2014 Search
Weather | Athens
18o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Credit to start flowing to SMEs in September

 Institution for Growth to begin funding local companies with 200 million euros at lower interest rates

By Sotiris Nikas

The first 200 million euros in funding from the Institution for Growth in Greece (IfG) will start flowing to small and medium-sized enterprises in September, offering loans with lower interest rates through the country’s banks, the government announced on Tuesday.

The ministers for development, Costis Hatzidakis, and finance, Yannis Stournaras, along with Ulrich Schroeder, the managing director of German investment bank KfW, yesterday presented the IfG action plan, which provides for the recycling of the first loans, which could reach up to 700 million euros in the next seven years.

Hatzidakis stated that the IfG and the joint action with KfW for SMEs will offer “a liquidity lifeline for smaller enterprises that is more necessary than ever.” Stournaras added that the German bank’s support is crucial, while Schroeder voiced an appeal for “potential partners” and “interested parties who could join forces with us and offer more funds.”

Hatzidakis confirmed that contacts are continuing with France, whose loan and deposits fund may contribute to the IfG, saying, “I would like to think that we are at the conclusive stage in our talks with all other interested parties.”

According to the plan presented yesterday, out of the first 200 million euros in credit, half will come from Greece and the other half from KfW, guaranteed by the German government. The interest rate for SME recipients will be between 1 and 3 percent below the current levels.

The main criterion for the selection of recipients will be that applicant SMEs should employ no more than 250 people. However, Schroeder said it will be the banks that determine the final conditions of the loan contracts, weighing up the risks on a case-by-case basis.

Loans will amount to a maximum of 1 million euros and are to be used for investments, cash needs or even to refinance working capital. Enterprises will initially repay only the interest, before paying back the rest at the end of the loan period.

The IfG will also drastically cut the bureaucracy associated with issuing credit to SMEs. The plan is for all 200 million euros to be distributed by mid-2015, although Schroeder argued this could happen before the end of this year.

ekathimerini.com , Tuesday May 20, 2014 (22:23)  
Athens deserves slack from creditors
Transfer tax to be based on actual property cost, not objective value
Key general meeting at OLP on Tuesday
Agenda
Cyprus on agenda in Biden visit to Istanbul
The prospects for the resumption of stalled peace talks on Cyprus and the issue of energy security were among the matters discussed on Saturday by US Vice President Joe Biden and Turkish gov...
PASOK nixes Papandreou leadership challenge
The junior coalition partner PASOK rejected over the weekend a proposal by the party’s former leader and ex-premier George Papandreou for the party to call an emergency congress and a subseq...
Inside News
INTERVIEW
Tokyo hopes to change the world
The 2020 Summer Olympic and Paralympic Games in Tokyo will serve as a springboard for the rebuilding of Japan’s image and economy following the triple blow of the earthquake, tsunami and nuc...
BASKETBALL
Big win for Greens, tight one for Reds
Panathinaikos scored a crucial as well as emphatic away win at Turow on Thursday that should see it qualify from its tough group to the top 16 of the Euroleague, while Olympiakos saw off vis...
Inside Sports
COMMENTARY
Extremism from a bygone era
There are times when we seem to be overcome by self-destructive madness. I hear various commentators and politicians speaking in extreme terms of a junta, of defections, gallows, collaborato...
EDITORIAL
No call for more games
Psychological warfare has been a part of the negotiations between the troika and Athens from the very start of the crisis. But the situation is much different now and troika decision-makers ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Athens deserves slack from creditors
2. Transfer tax to be based on actual property cost, not objective value
3. Key general meeting at OLP on Tuesday
4. Agenda
5. Carlsberg to use Greece as regional junction
6. Cyprus on agenda in Biden visit to Istanbul
more news
Today
This Week
1. Extremism from a bygone era
2. No call for more games
3. Carlsberg to use Greece as regional junction
4. Agenda
5. Key general meeting at OLP on Tuesday
6. Transfer tax to be based on actual property cost, not objective value
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Greece and Poland switch roles as young Greeks head to vibrant Eastern European country for better prospects
3. Biden heads to Istanbul amid tension over Cyprus EEZ violation
4. Anti-junta uprising anniversary to be marked amid tight security
5. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
6. Every age has its collaborators
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.