HDB’s new financing tools and the next big export bet

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2 billion loans in Northern Greece, mainly for trade and manufacturing – New financing programs and tools

In January 2023, the “Know Your Customer” platform of the Hellenic Development Bank (HDB) is expected to be put into operation, which, among other things, aims to make small and new businesses that wish to benefit more “visible” in the banking system of its products: Just 5% of loans through HDB have so far been given to start-ups with less than three years of business life, a fact the bank’s management wants to change.

The timetable for the operation of the new platform was mentioned tonight by the president and managing director of the Hellenic Development Bank – HDB, Athina Hatzipetrou, speaking at an event organized in Thessaloniki by the Exporters Association (SEBE), the Thessaloniki Chamber of Commerce and Industry (EBETH) and HDB.

“We need this new platform because we want to help both policy making and the banking system by ensuring a very clear picture of young – not only in age, but also in business lifetime – entrepreneurs. We want new entrepreneurs to be able to upload their information through this platform, inform us, introduce themselves and give them the so-called first “health check”. And then their request (for financing) should be uploaded and the entire banking system, which participates in our products, would see it,” underlined Ms. Hatzipetrou. He added that this will change the balance, because even a very small business will have the same possibilities as a large one, in terms of approaching the banking system.

2 billion loans in Northern Greece, mainly for trade and manufacturing

Referring specifically to the region of Northern Greece, the president and CEO of HBD announced that the loans that have been directed to the region to date amount to 2 billion euros. “20% of our loans were given in Northern Greece” he noted and added that of these, 32% concerned loans of up to 2 million euros, 30% up to 10 million euros, 26% up to 50 million euros and just 11% over 50 million euros.

Otherwise, 40% of the loans in Northern Greece were directed to wholesale and retail trade, 34% to manufacturing, 6.5% to tourism (a lower rate than in the rest of Greece), 5% to construction, 3 .6% in agriculture, 2.3% in transport and storage, etc.

Ms. Hatzipetrou finally pointed out that the bank wants to continue supporting Greek small and medium enterprises to strengthen their extroversion and development and to achieve the – necessary, but not easy – “double transformation”, i.e. the green and digital transition .

The big bet for Greek exports in 2023-2024

The estimate that Greek exports of goods could reach 52 billion euros this year, setting a new record, was formulated by the president of SEVE, Symeon Diamantidis, during his greeting at the event. He added that the next big bet, for 2023 and 2024, is for very small, small and medium enterprises to develop their extroversion, as today 70% of Greek exports are made by large (by Greek standards) enterprises, with more than 250 employees. “Think about the heights Greek exports would reach in five years, if small and medium-sized enterprises started to export as well,” he said.

He pointed out, however, the problem posed by the small size of Greek businesses, which, if they want, for example, to reach out to large supermarket chains abroad, should cooperate and form clusters. In fact, he submitted a proposal for the creation of export “bases” in foreign countries, where Greek SMEs will be able to sell their products, and then reach foreign consumers through platforms such as InstaShop, the startup founded in 2015 in Dubai by two Greek businessmen and was acquired for 360 million euros by a German giant (including Delivery Hero).

New financial programs and tools

Afterwards, HBD executives presented the funds and the bank’s new financing programs and tools:

*TEPIX II, available until October 2023, for financing of 25,000-1,500,000 euros, with an application completed in less than a minute.

*The Hellenic Development Bank Guarantee Fund – TMEDE, available until the end of 2023, a useful tool, e.g., for engineers implementing Recovery Fund projects.

*The Subsidy Fund for Producers of Audiovisual Works, with financing for film productions and gaming, which, however, businesses and professionals in the field seem not to have “discovered” yet, as this constitutes only 2% of the bank’s loans, despite the fact that, especially Thessaloniki, is rapidly developing its audiovisual industry.

*The Agricultural Entrepreneurship Microloans Fund which will be launched in January and concerns the financing of investment projects with small loans to agricultural and manufacturing enterprises. The aim is to benefit more than 2500 businesses.

*The ‘Development Law Financial Instrument Guarantee Fund’, which is aimed at micro, small and start-up businesses that lack sufficient financial track records to independently receive funding from the 13 development law regimes. With the guarantee of the Hellenic Development Bank, their inclusion in the new development law 4887/2022 is facilitated.

*The Innovation Guarantee Fund, which combines the guarantee of an investment loan with a grant, if innovation and ESG (Environmental Social Governance) criteria are achieved. Available until the end of 2025, the Fund is expected to quadruple through market leverage the EUR 35 million available funds from HBD to EUR 140 million.

*The three new financing programs, which are expected to create financing opportunities in cutting-edge sectors, through a total portfolio of 1.5 billion euros: the Green Guarantee Fund for Sustainable Development (portfolio of 500 million euros), the Digitization Guarantee Fund for Sustainable Development (250 million) and the Growth Fund (working capital, 750 million euros).

Greetings were addressed at the event by the Deputy Minister of the Interior (Macedonia-Thrace), Stavros Kalafatis, and the Vice-President of EBET, Manolis Vlachogiannis, while representatives of four systemic banks and Optima Bank gave their views on the cooperation with HDB, highlighting the catalytic role played by played by the Hellenic Development Bank during the pandemic.

RES-EMP

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