Government plan to lend more business

By Leonidas Stergiou

The government is running a four-point plan with the aim of increasing by at least 100,000 eligible companies that will meet the banking criteria for borrowing in one year. The increase in eligible companies for lending (bankable) will come from the consolidation and the creation of new viable business units. This will be achieved through a combination of tax incentives, special programs through the NSRF and the Hellenic Development Bank, and through the consolidation of companies from the management of red loans.

The government plan is based on four axes:

First, debt restructuring and debt refinancing of sustainable enterprises. The plan envisions the release of funds from “zombie” companies through the bankruptcy law and the restructuring of lending to viable businesses by loan management companies. Bank of Greece Mr. Elias Plaskovitis and from the side of servicers, the president of their Association and vice president of doValue Mr. Anastasios Panousis Their main task is to search for best practices, new tools, accelerate the possibility of refinancing red loans, and The institutional framework that affects the operation of the new bankruptcy and the consolidation of red loans will begin with restructuring that will include longer haircuts, lower interest rates, longer repayment periods and debt refinancing by management companies, in the first stage. phase, from 2022, the public will start creation of self-financing conditions of corporate debt through restructuring and in two years at the latest, the first permits are expected from the Bank of Greece to the management companies for refinancing. Already, a management company working with a systemic bank is looking for solutions for cheaper capital in order to proceed with refinancing. At the same time, improvements are being sought in reducing the institutional framework for reducing bureaucracy (eg mortgage offices), faster administration of justice (for cases of liquidation of property, bankruptcy and second chance), but also greater flexibility in consolidating loans and returning them to banks.

Second, new financial and non-financial programs through the Hellenic Development Bank and the Ministry of Development. The new products are designed by the head of the Hellenic Development Bank, Mrs. Athena Hadjipetrou, and the Deputy Minister of Development and Investment, Mr. Giannis Tsakiris. The central point of this action is the creation of horizontal programs with NSRF resources as a guarantee and launch through the Hellenic Development Bank, in cooperation with the banks. These programs will not concern sectors, but sectors, such as modernization, but also working capital. For the creation of these programs, qualitative surveys-polls are carried out at the same time. As stated by the head of HDB, Mrs. Athena Hadjipetrou, for the next period, we are working on, among other things, new products for the Primary sector (financial and not), green development and digital transformation, Island Entrepreneurship Support Program as well as, a new financial product (mezzanine) which functions both as a loan financing instrument and as a share capital, ie it enhances liquidity without significantly burdening the liabilities of the balance sheet of the beneficiary companies. At the same time, the development of actions for training of small and small enterprises in the preparation and implementation of business plans continues, while the elaboration for the creation of fintech Know your Customer (KYC) service is underway, in order to evaluate the possibilities of enterprises based on their overall action. , not just their financial past.

Third, tax incentives for mergers, partnerships between companies, in order to increase their size and create more competitive schemes. The Ministry of Finance is already promoting the 30% tax deduction for 3 years for mergers and transformations of small enterprises. Thus, in the case of mergers and transformations, the tax rate is reduced from 22% to 15.5 for three years. At the same time, the tax incentives provide for a tax exemption in the case of cooperation of persons, an exemption of goodwill income from the transfer of fixed assets to a third party and a deduction of expenses in cases of acquisition.

Fourth, tax incentives for raising funds through the capital market, ie through the Athens Stock Exchange and the issuance of green bonds. This is a list of tax deductions and exemptions that have already been estimated in terms of budgetary costs by IOBE and the Ministry of Finance is entering the phase of gradual implementation.