By Leonidas Stergiou
The steep increase in co-financed loans to small and medium-sized enterprises in the last two years, as well as the plans to increase the number of enterprises that will meet the banking criteria, were presented by the president and vice-president of the Hellenic Development Bank (HDB), Mrs. Athena Hatzipetrou and Mr. Pantelis Tjortzakis, respectively.
Initial resources (European funds, co-financed, Greek State) 3.6 billion euros programs were created, which led to loan disbursements of 8.6 billion euros (Guarantee Fund, Covid programs, etc.). Loan disbursements of 500 million euros remain in the “queue”. To these are added another 2 billion euros, of which 1 billion will aim to cover the gap in business financing from investments through the Recovery Fund, while another 1 billion euros will concern programs exclusively to strengthen innovation, extroversion and sustainable entrepreneurship with ESG criteria.
Total loans of 11 billion euros
Overall, potential loans increase from €8.6 billion to €11.1 billion. From these amounts, from 2003 to 2019, almost 280 million euros were disbursed, while all the rest within the last two years, starting with the pandemic year 2020. From the data presented by the management of the Hellenic Development Bank, the contribution to support of the real economy can be seen from the leverage (3.1 times), but also the return of 3.06 billion euros (from the total allocations) to the state (in the Public Investment Program). As highlighted, for every €1 granted through the HDB, an additional €2 is added to the Greek GDP.
In addition to the new co-financed programs, HDB is now focusing on the creation of modern tools to support Greek entrepreneurship, with a direct result in the expansion of Greek bankability, noted the president of the bank, Mrs. Hatzipetrou.
New tools
This is to be done with the function in the near future:
First, an electronic platform, where every business will be able to post its business plan with the aim of increasing bankable businesses. HDB will do the first check for the basic criteria (tax, insurance awareness, etc) and then, if you meet them, you will appear as interested in financing throughout the banking system. That is, the application will not be made by the business to the bank, which, if it judges that it meets banking criteria, is then forwarded to HDB. This does not mean that banking criteria and the role of banks are abolished. The decision on the credit risk and on the interest in financing will belong exclusively to the banks. However, in this way, as explained by Ms Hatzipetrou, HDB will obtain primary data on how many businesses are “cut off” and the reasons why they do not meet the banking criteria. This data will then be used by the HDB and the State, in order to take appropriate measures to increase the perimeter of the so-called bankable businesses. At the same time, the fact that the interest of a business and the application is visible throughout the banking system (every business from every part of Greece, without the mediation bank branch will be able to post the application) will lead to higher competition and better knowledge of the healthy and new clientele.
Secondly, a new innovation program and non-financial tools, such as consulting, the ability to interface with international investors (Innovation Hub), a platform (Innoagora) that operates a “social network” between businesses-entrepreneurs and investors, as Mr. Tzortzakis explained.
Thirdly, obtaining Pillar Assessment certification, which HDB is working towards so that it can now receive direct funds from the Community Budget.
Fourth, HDB is going to develop a direct financing process for businesses that meet specific criteria, such as that of innovation and ESG criteria, giving incentives to reduce energy through a return of eg 20% ​​of capital.
Giannis Stournaras
The governor of the Bank of Greece, Mr. Giannis Stournaras, requested the further upgrading of HDB’s role, following the standards and role of the other major European development banks. Mr. Stournaras did not fail to mention the significant support of the Greek economy and businesses by HDB during the pandemic and in recent years.
Adonis Georgiades
The competent Minister of Development and Investments, Mr. Adonis Georgiadis, stated, among other things, that “the Hellenic Development Bank, in the three years of the government of the New Democracy, has managed to grant more loans than had been granted in total in the first 16 years of its operation (since its establishment as TEMPME initially in 2003). At the same time, it managed to be the first in the EU to design and activate financing tools during the pandemic crisis, supporting thousands of businesses and tens of thousands of jobs”.
Yannis Tsakiris
The supervisor of HDB, Deputy Minister of Development and Investments, Mr. Yannis Tsakiris, after commenting on the way in which the banks finance, saying “unfortunately we have these banks, we have to proceed with them” underlining the importance of bankability, he added, among other things : “In a wider climate of uncertainty and instability, the Hellenic Development Bank reminds us that it is the necessary development tool of the country, as it designs and creates financial tools for the optimal channeling of both national and European funds. In the last two years, it has substantially contributed to the development prospects of the Greek economy, having already granted more than 8.6 billion euros to cover the financial gap in the market, with more than 41,000 new loans. It has simultaneously contributed to the creation of over 180,000 new jobs”.
Source: Capital
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