ECONOMY

Athens eyes €7.5 billion in funds in 2021

athens-eyes-e7-5-billion-in-funds-in-2021

The government is reportedly looking forward to securing a cash injection to the tune of 7.5 billion euros in 2021 and facilitating the implementation of the national recovery plan.

This will be done with an additional tranche from the recovery fund for this year, amounting to around €3.5 billion, apart from the €4 billion advance.

Essentially, this means that about 25% of the fund’s resources to which Greece is entitled (€30.5 billion) will flow into the state coffers from the very first year, which is expected to positively impact the markets.

“This signals that the country is moving to the next phase,” said a source from the government’s financial staff.

Speaking at the Delphi Economic Forum on Thursday, Finance Minister Christos Staikouras said the government would seek to collect more than €4 billion in advance this year, without going into detail. 

Kathimerini understands that the disbursement of the €3.5 billion, including loans, will hinge on Greece taking specific initiatives by the third quarter of the year, which are considered realistic. 

For instance, with regard to the disbursement of the loan portion, two moves must be made – the signing of a business agreement with an international bank to participate in the financing (i.e. the government has already signed a memorandum of cooperation with the European Investment Bank, which is the first stage), and the publication of the invitation for the participation of private banks, which is also being drafted. Mostly legislative moves will lead to the disbursement of the fund portion.

Staikouras said that about €1.5 billion from these funds is intended for small and medium enterprises, responding to opposition party criticism that these businesses have not been backed.