60,000 SMEs to have access to loans of 2.5 billion euros with favorable terms

60,000 SMEs to have access to loans of 2.5 billion euros with favorable terms

Over 60,000 small enterprises that have been excluded from accessing banking loans will now have access to financial support through a new tool called “Know Your Customer,” created by the Hellenic Development Bank (HDB). The tool was presented during an event attended by Prime Minister Kyriakos Mitsotakis and the leadership of the Development and Investments Ministry on Friday.

The aim of the initiative is to replace banks in evaluating small enterprises and provide guarantees to banks for approving loans, thus enabling these excluded enterprises to access credit and contribute to economic growth, job creation, and business justice. The HDB aims to offer credit to 100,000 enterprises in response to the demands of the union of small and medium-sized enterprises, GSEVEE.

Development and Investments Minister Adonis Georgiadis said that the HDB would “do the job for banks” and “open the door for enterprises” to access the banking system. The “Know your customer” initiative comprises four funding programs worth 2.5 billion euros, which will be connected by the IT systems of the tax authority, the social insurance fund, and Teresias, the banks’ credit watchdog. This interconnection will enable the HDB to certify the tax, insurance status, and credibility of the enterprises.

The four programs include green co-funded loans for small and medium-sized enterprises in the sectors of energy efficiency/transition and renewable energy development, digital upgrading loans, loans to cover capital needs, and loans for enterprises included in the development law. Loans range from 10,000-10 million euros, and the HDB will cover 40% of the loan, which will have a duration of 2-10 years. The HDB will also guarantee up to 80% of the loan’s value and reduce the final interest rate of the loan by 40%.

The “Know Your Customer” initiative is expected to begin operation within a month. [AMNA]

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