Already, loan contracts have been signed, with a budget of more than 3 billion euros, while there is plenty of space for interested investors, up to the amount of 25-30 billion euros of projects, which the loan arm of the Fund can cover.
The assessment that the loan agreements of the Recovery and Resilience Fund (TAA) will reach up to 10 billion euros, in the first half of the year, was expressed by the Deputy Minister of Finance Theodoros Skylakakis, in the context of events for “Opportunities and Prospects” Greece 2.0″, which took place in Kavala and Serres (12-13/1).
Already, loan contracts have been signed, with a budget of more than 3 billion euros, while there is plenty of space for interested investors, up to the amount of 25-30 billion euros of projects, which the loan arm of the Fund can cover.
As mentioned in an announcement by the Ministry of Finance, Mr. Skylakakis spoke of a change in the “economic track”, describing “the transition from overtaxation policies, from “hostility” to investment and the private investor and entrepreneur of the current official opposition and from the uncertainty caused by the adventure of 2015, which “repelled” investments, to policies that make Greece particularly attractive for investments”.
“In order to have investments, you must have companies that are interested in investing,” he said characteristically, stressing that over the last three years “government policy has multiplied the incentives in the economy for work, production and creation, as a result of which it has already brought very large , private investments”.
He also pointed out that the government coped with the three crises (pandemic, energy-inflationary and Turkish threat) that it faced.
In the midst of these, “we have reduced taxes and contributions (e.g. income tax, business tax, ENFIA, advance tax, social security contributions, etc.)” he said and added: “We have succeeded, at the same time, due to growth and despite the large spending to support the economy and society to have a reduction in public debt, as a percentage of GDP.
The economy has improved its position, it is a “step” below the investment grade. This year’s budget foresees a return to primary surpluses. Our bond interest rates are close to those of Italy. We have a 30% increase in investments and covering the investment gap.”
Additionally, he emphasized that this climate reversal is permanent. And considering that the part of it that we have seen – in real investments – is “the tip of the iceberg”, in relation to what follows, he focused on the contribution of TAA in this direction.
For example, he referred to a project promoted through “Greece 2.0” and concerns the storage of carbon dioxide (CO2) in Kavala.
From its implementation, the region will gain a very important competitive advantage in attracting industrial investment, as it will have the first C02 storage in Southeast Europe and the Mediterranean, which will allow a significant reduction in the cost of CO2 for industries whose production process entails forced CO2 emission and are close to the new facility.
And indeed at a time when large international companies are looking for places and countries in Europe, to bring their investments from Southeast Asia, for reasons of security of supply chains, it is noted in the same announcement.
In addition, Mr. Skylakakis announced three initiatives of the TAA, exclusively, for the strengthening of small and medium enterprises (SMEs), which will “run” in the next period of time.
First, the “Escono business”, which is about saving and self-producing energy and is going to open within the next few weeks. Secondly, a new financing tool, which will come out in the first quarter of the year, where 2.5 billion euros of loan resources will be channeled to SMEs, from InvestEU.
Thirdly, the second cycle of processing agricultural products – given the high interest recorded in the first.
He also noted that in the TAA loan arm the investment plans submitted by SMEs exceed 2 billion euros, while at the same time he explained that with the incentives for collaborations legislated by the government, SMEs can grow and/or create wider partnerships (cluster), so that SMEs can “search for their future”, through a model of low taxation and economies of scale.
On the occasion of the recent (12/1) approval by the European Commission of the second payment, amounting to 3.6 billion euros, from TAA (subsidies: 1.72 billion euros and loans: 1.84 billion euros), he pointed out that by fulfilling, earlier than the original planning, the milestones of the loans, 1.84 billion euros flow into our cash available earlier.
A fact that translates into a benefit of more than 20 million euros, from the difference in interest rates, it is pointed out.
He spoke about the revision proposal of “Greece 2.0”, which will be presented to the Commission in the coming months. Among other things, it will provide for more reforms and the movement of resources to programs that show increased momentum, as shown by absorption.
“We can be more optimistic for 2023 and for the following years, above all because the country has the Recovery Fund in front of it, to make use of it” underlined Mr. Skylakakis and referred to the basic “philosophy” of the Fund, which as he said: “…has at its “core”, like all our economic policy, the change of the production model, which will come through extroversion, competitiveness, investments and the transition from high taxation and high tax evasion, to low taxation and low tax evasion, respectively, i.e. in the so-called “white” economy.
This model, with TAA money and with a better international environment, which hopefully comes as the crises end, can give Greece an amazing perspective in the coming years. This is what we can do. And we as a government, with prudence and seriousness, will pursue this, to the extent that we will have the trust of the Greek people in the next elections”.
The events for “Opportunities and Prospects of “Greece 2.0″” were organized by the Economic Chamber of Greece (OEE), in collaboration with the Ministry of Finance and the Special Recovery Fund Coordination Service (EFSTA).
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