ECONOMY

Ministry tries to meet incentive obligations

ministry-tries-to-meet-incentive-obligations

The Economy Ministry is considering changing investment incentives from subsidy- to tax-related, as well as introducing extraordinary lending by investment banks and excluding projects unlikely to be completed, in a bid to cover the funding commitments of 4.6 billion euros concerning the projects approved under the two previous investment incentives law, of 2004 and 2011.

Minister Giorgos Stathakis told a press conference on Monday that the ministry is considering coming to an agreement with investors whose plans have been approved under the previous incentives laws, so as to switch the incentives granted from pecuniary to tax exemptions and to convince them to switch to the provisions of the new investment incentives law, to be voted on by Parliament by the end of the year.

In order to cover its obligations, the ministry will resort to loans from investment banks, in the hope its needs will be less than the current 4.6 billion euros provided some projects are excluded.

The ministry is also planning to introduce changes to the fast-track investment approval system, including the reduction of the minimum investment threshold to below the current 100 million euros.