BUSINESS

Loans worth €2.5 billion for companies

EVGENIA TZORTZI

TAGS: Banking

The new funding package for the market through the second phase of the Guarantee Fund will be open to all enterprises, regardless of whether they have received loans from other programs of the Hellenic Development Bank (HDB) to date, according to the invitation for expressions of interest issued on Monday.

The budget for this new cycle of loans will come to 780 million euros, which along with the leveraging of banks is expected to lead to state-guaranteed loans of €2.5 billion.

The HDB called on banks yesterday to express their interest in participating in this new phase of Guarantee Fund loans primarily set to benefit small and very small enterprises hurt by the effects of the pandemic. The participation of banks must be confirmed by October 12 and loans ought to be issued by December 31, 2020.

HDB head Athina Hatzipetrou said that between 75% and 90% of the new loans in this phase will be prioritized for the country’s small companies: The state collateral will be broken down to €700 million for very small to medium-sized enterprises, with only €80 million set aside for the large ones.

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