The gains from completing the national program are huge, as it will further boost growth by 1.2% a year until the end of the decade and more than 200,000 jobs. The road, however, will not be easy. From now until the end of the program, in August 2026, Greece will have to absorb and return to the project 723 million euros every month.
In terms of commitments, it will need to meet another 155 milestones and targets to continue to be at the forefront of Recovery Fund tranches. Last week we had the first “squeeze”, with the breaking of 4her installment of 3.3 billion euros in two parts, with the Ministry of Finance making a request for payment only for the 2.3 billion euros of loans in the tranche, with the prospect of requesting 1 billion euros of grants with a new request in in May. This means that absolute coordination will now be required in order not to lose what has been gained so far.
Through the 103 investments and the 76 reforms that will be implemented, small and medium enterprises will also benefit, in which at least 1/3 of the resources will end up, i.e. 12.3 billion euros out of the total 36 billion euros of the Greek program.
the 50%
Small and medium-sized enterprises will have available approximately 50% of the 36 billion euros of “Greece 2.0”, i.e. 21.6 billion euros, but under conditions. First of all, we should remember that approximately 50% of the loans amounting to 17.3 billion euros, which Greece has secured from the Recovery Fund, concern investments that will be able to be made by small and medium enterprises that employ up to 250 people.
It is noted that by 26/3/2024, 287 loans had been contracted, of which 136 are loans for small and medium enterprises. The budget of all loan agreements reaches 11.15 billion euros, of which 4.75 billion euros are loans from the Recovery Fund, 3.77 billion euros are loans from banks and 2.63 billion euros are equity funds of investors. A condition for someone to benefit from the Recovery Fund loans is to have a so-called “banking profile”. In other words, his business must show profits for the last 3 years, have no unregulated debts to the tax office, have no “red” loans and of course not have the title of a bankrupt business based on EU regulations.
There have been direct grants of 1.35 billion euros for digitization, modernization of tourist infrastructure and agri-food exclusively for small and medium-sized enterprises. At this time, the special program “Save by Doing” with a budget of 400 million euros is also “running”, which is also aimed at small and medium-sized enterprises.
Programs
With regard to small and very small businesses, which have the biggest problem of accessing bank loans, the Hellenic Investment Bank has “run” from 2021 programs of guaranteeing and subsidizing capital and interest for a total amount of 9.3 billion euros which were based on TAA resources amounting to 2.23 billion euros.
In the next period, two more guarantee programs will “run”, TEPIX III and a second guarantee program in which the European Investment Fund and the European Bank for Reconstruction and Development will participate. Each of them starts with capital of 500 million euros from the TAA and with the leverage achieved through commercial banks will lead to loans of 2.2 billion euros in each of the interventions. Through these programs, businesses can cover up to 80% of the real guarantees requested by the banks, or get financing for up to 40% of the interest and a 2% reduction in the balance of the interest on their loans.
Recovery Fund: The emblematic projects of “Greece 2.0”
Green transition: Based on the structure of the Greek program, the lion’s share is absorbed by the green transition sector. Of the 36 billion euros that are currently the resources of the Recovery Fund, the energy sector absorbs 11.7 billion euros, i.e. regarding 1/3 of the total. Projects such as:
1 The large energy storage systems, up to 1.380 MW (pump savings-batteries), which are decisive for the “green” revolution and the development of RES and for which the Greek proposal foresees investments 450 million euros
2 The interconnection of the Cyclades, the overhead line Corinth-KYT Koumoundourou 400 KV and other accompanying projects ADMIE me investments 195 million euros.
3 The new improved “Excoionamo” programs for energy upgrading of residences, commercial properties and State properties for which approximately 2.1 billion euros will be allocated.
4 The creation of facilities for sequestering carbon dioxide (CO2) and its storage, total amount 300 million euros.
5 The electrification of the transport space with height investments 220 million euros. Piit also includes subsidies for the installation of approximately 8,500 chargers nationwide.
6 The subsidy for the creation of production units of clean vehicles with 200 million euros.
7 The de-lignitization of Western Macedonia and Megalopolis with investments 242 million euros for the restoration of approx 60,000 acres of gray soils in its old lignite mines PPC in order to be allocated for agricultural and tourist uses, development of photovoltaic and research centers. The program has a total budget of 1.6 billion euros.
Public Digitization: One of the most pivotal changes that the Recovery Fund will finance, since, according to the BoE, it will be a reform that will continue to increase GDP by 0.3% on its own for many years to come. A total of 1.4 billion euros will be allocated for the digitization of the State. Particularly:
9 The interoperability of public services, i.e. the ability of one service to communicate electronically with the other and to obtain information following a citizen’s request, will cost 80 million euros.
10 The new application Public Contracts Information System to complete their electronic implementation and to integrate into it new sophisticated interoperability services will cost 100 million euros.
11 The upgrade of the KEPs will cost 30 million euros.
12 The new optical fiber network that, in combination with the 5G networks, will be the property of the state, in addition to private individuals. The cost is 450 million euros.
13 The package is completed by programs for “smart” cities, improvements and extensions to the AADE network for upgraded tax audits.
Road works-infrastructure: Important road axes, such as its northern part E65 and BOAK and even 10 smart projects and non-infrastructure, are part of the Recovery Fund package.
14 The list includes a total of 12 projects, road axes, such as the northern part of the E-65 highway and the Northern Road Axis of Crete, which correspond to funding of 2 billion euros.
15 The road safety improvement program has a budget of 450 million euros. It provides for the rehabilitation of the road network and the repair of dangerous road surfaces in various regions of the country in order to improve the level of operation and safety of road transport.
16 The modernization through PPP of the railway network with an emphasis on electrification, signaling, telecommunications, electromechanical systems of the line from Piraeus/Athens to Thessaloniki with a budget of 120 million euros.
17 Upgrade interventions at 13 regional airports. A package of projects with a total budget of 107 million euros.
18 Creating smart infrastructures in environment and culture, including development, for which 174 million euros are allocated.
19 Town planning plans of approximately 250 million euros are directed to the preparation and validation of town planning plans, local and special, as well as to the demarcation of areas and zones of reception-transfer of building factor. Change that is considered structural for more rational development throughout the country.
20 Health: The Health package includes modernization and digitization projects with amounts of more than 800 million euros. The package foresees the modernization of 80 hospitals and 165 Health Centers throughout the country with resources of 350 million euros. Creation is also included of the patient’s electronic health file, a project that will be subsidized with 278 million euros.
21 Justice: The Recovery Fund is financing a holistic reform with resources exceeding €600 million. The reform includes a new judicial charter, institutionalization of out-of-court dispute resolution, training of judges and court officials in digital case management, and finally redeployment of staff and new judicial infrastructure.
22 Civil Protection: The Recovery Fund will have a participation of 400 million euros in the “AEGIS” program. The funding concerns the placement of smart sensors in forests and the completion of logistical infrastructure for protection once morest extreme natural phenomena.
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