Financing incentives for Greek businesses affected by Covid-19

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19 March 2020
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9 April 2020

Financing incentives for Greek businesses affected by Covid-19

A series financing incentives have been decided by the Greek Government to support the economy and Greek businesses that have been severely affected by Covid – 19 pandemic.

1.Business financing (€1 billion)

€1 billion financing framework will be implemented, in the form of a revertible advance payment, with an extended repayment and grace period, for all businesses severely affected by the spread of COVID-19, according to the minister of Development, Adonis Georgiadis.

The grant framework will be specified in the next few days and the main goal is the preservation of existing working positions.

2.Coronavirus Response Investment Initiative (1.8€ billion)

An additional 1.8€ billion will be allocated through the European Special Investment Fund / Coronavirus Response Investment Initiative

This fund was created last week to counter the effects of the spread of COVID-19. The funding will be immediately available and may finance business liquidity, employment support and employee income.

Business liquidity will further be supported by optimally combining funds from the Public Investments Program, the NSRF, the Greek Development Bank and the European Investment Bank Group.

3.Suspension of tax and social security contributions for businesses

For all relevant businesses affected by the pandemic (identified by their activity code numbers), the following payments are suspended (interest and surcharge-free) for 4 months:

Payment of VAT, payable in March.

Payment of any type of certified debt to Tax Offices or the Audit Centers.

Payment of regulated installments of partial payment of certified debts.

4.Banking measures

Banks and loan administrators, in close cooperation with the relevant Ministers of Finance and Development and Investments, will support both businesses and individuals affected by the crisis, facilitating installment payment of their loans. Employees, freelancers and individual businesses will be able to suspend installments for up to 3 months.

Banks are already suspending the bankruptcy payments for consistent businesses until September.

Finally, the Hellenic Capital Market Commission already undertook precautionary measures to protect the stock exchanges.

Furthermore to the above announced incentives, there several subsidies for Greek companies.

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