The minimum lending rate is set at 0.35% within the framework of the “Greece 2.0” Recovery and Resilience Fund, by decision of the Minister of Finance, Christos Staikouras and the competent Deputy Minister of Finance, Thodoros Skylakakis, published in the newspaper Government.
This term, in relation to the interest rate, applies to all loan agreements concluded between the banks participating in the Program and the eligible investors. It is clarified that the interest rate may, as the case may be, be higher.
So far, the following credit institutions participate in the lending arm of “Greece 2.0”: European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), National Bank, Piraeus Bank, Alpha Bank, Eurobank, Optima Bank and Pancretan Bank.
In the near future, a new call for expressions of interest is expected to be issued for participation in the Recovery and Resilience Fund of more banks.
It is recalled that in a previous decision of the Deputy Minister of Finance, Mr. Thodoros Skylakakis – in force since December 2021 – have been determined the criteria for evaluating the eligibility of investment projects, financed by loans of the Recovery and Sustainability Fund “Greece 2.0”.
In particular, the amount of financing of the investment project, from the loan of the Recovery Fund, is calculated according to the existence of a budget of eligible investment costs in the five pillars of the loan arm of “Greece 2.0”, as well as meeting specific criteria per pillar:
1. Green transition
The green transition investment budget, which contributes to the green tagging of the National Recovery and Sustainability Plan (ESAA), must be at least 20% of the total investment plan budget.
2. Digital transformation
The digital transformation investment budget, which contributes to the ESAA digital targeting, must be at least 10% of the total investment plan budget.
3. Innovation, research & development
The eligibility of at least one of the indicators of innovation – research & development, as they are specified in the Ministerial Decision, must be covered. At the same time, the minimum investment budget in this “triptych” must be at least 10% of the total budget of the investment plan.
4. Development of economies of scale through partnerships, acquisitions and mergers
It concerns an existing or new collaboration or the creation of a new scheme, which will result from an acquisition / merger.
In existing and new partnerships, at least 20% of the eligible costs of the investment plan relate to the investment costs incurred in accordance with the cooperation agreement.
In the case of acquisitions and mergers, the average total turnover of legal entities, at group level, participating in the merger or acquisition during the previous three years is higher, by at least 50% of the turnover of the legal entity, at group level, with higher average turnover between legal entities, at group level, participating in the acquisition or merger during the same period.
5. Extroversion
The eligibility of investment projects is determined by the existence, alternatively:
a. Average of an investor’s existing export activity, at least 15% of its turnover. The financial data of the investor for three years are examined, alternatively the share of the turnover, which is realized with foreign credit cards or remittances.
b. Minimum export budget of the investment plan, at least 15% of the projected total income of the investment plan (viability study).
Independently, the investment plans of tourist accommodation, investments of complex tourist accommodation, as well as complexes of tourist houses that include at least 5 independent tourist houses are eligible.
Eligible costs
Regarding the eligible costs of the investment projects financed with loans of the Recovery and Resilience Fund, these include those that take place within the Greek territory and relate to the following:
a. Land for purchase, land for use (depreciation / lease), landscaping.
b. Buildings purchase / construction, buildings use (depreciation / leases).
c. Equipment purchase / construction, equipment use (depreciation / lease).
d. Means of transport purchase, means of transport use (depreciation / leases).
e. ‘Purchases / construction, intangible use (depreciation / subscriptions).
f. Payroll linked to the investment plan.
g. Travel / expenses.
h. Third party services.
i. Consumables.
j. Operating (communication, energy, maintenance, rents, administration costs, insurance, etc.).
ια. Cost of capital.
ιβ. Working capital (operating expenses, expenses related to the business transaction, VAT, etc.).
m. Promotion and communication costs (marketing).
The purchase of land is eligible, as long as it is interwoven with the investment plan and does not exceed 30% of the eligible costs of the investment plan.
The sum of working capital and promotion and communication costs may not exceed 30% of the eligible costs of the investment plan.
In any case, credit institutions may grant additional loans, in excess of the rate of the co-financing loan, in order to cover ineligible costs of the investment plan.
Ineligible activities
Excluded from Recovery Fund loans:
a. Activities prohibited by current national law.
b. Activities that restrict individual rights and freedoms or violate human rights.
c. In the field of defense activities, the use, development or production of products and technologies, which are prohibited by applicable international law.
d. Tobacco-related products and activities (production, distribution, processing and trade).
e. Activities excluded from funding, in accordance with the relevant provisions of the Horizon Europe Regulation.
f. Gambling (production, manufacturing, distribution, processing, trading or software activities).
g. Trade in sex and related infrastructure, services and media.
h. Activities involving live animals for experimental and scientific purposes, provided that there is no guarantee of compliance with the relevant European Convention.
i. Real estate development activity. However, real estate activities, which are related to the objectives of the Fund and are part of one of the five pillars of its loan arm, are eligible.
j. Financial activities aimed at selling assets, as well as activities of banking institutions and related companies, which carry out financial and insurance activities.
ια. Decommissioning, operation, adaptation or construction of nuclear power plants.
ιβ. Activities and assets related to fossil fuels, including downstream use.
m. Activities and assets under the EU Emissions Trading Scheme (ETS) to achieve the projected greenhouse gas emissions, which are not lower than the relevant benchmarks set out in Commission Implementing Regulation (EU) 2021/447.
n. Activities and assets related to landfills, incinerators and mechanical biological treatment plants.
o. Activities and assets where the long-term disposal of waste can harm the environment.
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