The state’s funding body for small and medium-sized enterprises (ETEAN) will channel liquidity of 1.2 billion euros in the form of loans for cash and guarantees in an effort to boost the market, its president, Giorgos Gerontoukos, announced on Tuesday.
He stated that the main condition for the implementation of this plan is the mobilization of banks through which these funds will find their way to the market, after plans have been updated to match new targeted programs for funding.
The main initiative concerns the creation of a new Fund for Loan Issuing with total funds of 450 million euros. ETEAN will contribute half of that amount, with the other half coming from the banks. Loans will amount to 50 percent of the enterprises’ turnover last year or 50 percent of the current year’s orders, with a favorable interest rate close to 4.5 percent.