Informative event on the new Development Law by Piraeus Bank

Piraeus Bank held an information event for its customers on the subject of the new Development Law – “Greece Strong Development”, which is a very important tool for companies planning investments in a wide range of sectors of the economy.

The Deputy Minister of Development and Investment Mr. Nikos Papathanasis, the Senior General Manager, Chief Corporate & Investment Banking of Piraeus Bank Mr. Thodoris Tzouros and Bank executives, discussed with representatives of Greek institutions the opportunities for new and provided answers to questions posed by the Bank’s customers from all sectors, who participated in the hybrid event.

The Deputy Minister of Development and Investment, Mr. Nikos Papathanasis, in the context of his speech, referred to the important incentives for investments given by the new Development Law in combination with the new Regional Aid Charter 2021-2027, promoting equal development in the Regions, with equal resource allocation and increased incentives in border areas and prefectures with high unemployment.

Small and micro enterprises receive an increased aid rate of 20% compared to large and 10% against medium-sized enterprises, while increased aid is provided for the areas of the Fair Development Transition and Thrace with emphasis on the remote Evros.

Mr. Papathanasis stressed that the new Development Law speeds up the evaluation and control procedures, utilizing privately certified certified auditors and introducing a new information system that reduces bureaucracy and provides interoperability with other systems (eg AADE, GEMI). At the same time, it promotes sustainable growth and employment growth while boosting investment in cutting-edge sectors such as digital and green transformation, new business and alternative tourism. It is worth noting that, for the first time, the possibilities of including non-regional investment projects in areas such as research and innovation, environmental protection and training of disadvantaged workers are exploited.

Finally, the Deputy Minister stated that in the coming weeks the first aid scheme will be announced, that of Manufacturing, while by the summer two more schemes are expected to be announced, Agri-Food and Tourism.

The Head of Corporate & Investment Banking of Piraeus Bank Mr. Thodoris Tzouros stressed that, despite the new challenges facing the Greek economy, after the Russian invasion of Ukraine, the humanitarian crisis and the turmoil in the markets it caused, the development course will not be stopped. for a number of reasons: even with the mitigation of growth rate estimates in 2022, 3-4% remains the EU’s highest rate, the strongest banking system productively supports the financing of the economy while the mood A variety of financial instruments, such as the Recovery and Competitiveness Fund or the co-financed programs of supranational bodies (such as the EIB and the EIF), mobilize and leverage active and stagnant resources towards the productive and economic reconstruction of the country.

“This dynamic perspective is also supported by the additional initiatives of the Greek government, such as the New Development Law”, said Mr. Tzouros and added: “At Piraeus Bank we believe that the effective and rapid management of the incentives of the New Development Law will is a key catalyst for ensuring the sustainable development of Greece in the next decade, and just as Piraeus Bank was present in all the great challenges of the past years, so now it will stand as an essential supporter in the effort of every business and every entrepreneur for a sustainable growth that supports every tomorrow “.

Mr. Dimitris Verelis, Head of Development, Sustainable Banking & Bank Relations of Piraeus Bank referred to two features of the Development Law, its ability to be combined with others with programs such as the Recovery and Competitiveness Fund, a combination that is able to provide a comprehensive program of capital, financial and operational support of the Greek company, utilizing the improved possibilities offered by the new Regional Aid Map, as well as the fact that it is traditionally the most important investment tool for Greek companies.

In the section on “The opportunity for the rebirth of Greek manufacturing and the role of Piraeus Bank” Mrs. Asimina Tzika, CEO, Elvial SA & Member of the Hellenic Aluminum Union, pointed out that the New Development Law, in conjunction with the Recovery Fund, will give significant impetus to companies to transform into technologically innovative and green companies, ready to play a leading role in the emerging challenges of the next day. “We all need to realize that volatile market and economic conditions will be our new reality and we entrepreneurs need to be constantly vigilant and operate with both us and our people with incredible flexibility,” Ms Tzika said. .

ELVIAL is in a phase of mature planning of its new investment plan, amounting to € 38m, which is based on the critical pillars of the green & circular economy, the digital transformation and the empowerment of human resources, and as Mrs. Tzika stressed, this new investment will join the new Development Fund and the Recovery Fund. “It is important to recognize that the new development is clearly in the right direction and gives strong incentives for the implementation of investments that aim to make Greek companies competitive in order to be able to play a leading role in the new international environment,” he said.

In the same section, Mr. Verelis mentioned that the Development Law, which offers strong incentives to support grants, leasing subsidies, subsidies for job creation costs and tax exemption depending on the size of the company and with increased aid limits based on the regional aid map , if combined with the significant incentive of the Recovery Fund, ie the low and fixed interest rate for the entire duration of the Fund’s loan, is the perfect investment tool.

The President of the General Confederation of Professionals, Craftsmen, Merchants of Greece & the Institute of Small Enterprises Mr. George Kavvathas and the Senior General Manager, Chief Retail Banking of Piraeus Bank Mr. Vassilis Koutentakis discussed the next day of small and medium enterprises.

As Mr. Kavvathas stated, “the concepts of digital transformation and the transition to a digital world, not only in the light of innovation, but also the necessary condition for adaptation to the new regularity that will betray characteristics of sustainability and perspective in business “The same anthropogeography of Small Businesses, which are mostly very small entities / sole proprietorships, face difficulties and seek to grow through self-development or mergers in order to acquire infrastructure and capabilities that will significantly increase their extroversion.”

Mr. Kavvathas stated that “in order to enhance the access of companies to lending, we have designed and will provide tools that will be a guide for the business in terms of creditworthiness in relation to its financial elements but also of the investment plan and its repayment capacity.” For this effort, we will sign a memorandum of cooperation (MoU) with Piraeus Bank with the ultimate goal of significantly enhancing the absorption of Development Law resources, for the benefit of the real economy of the country and the backbone of the Greek economy, ie small and medium enterprises. “.

Mr. Koutentakis pointed out that Piraeus Bank, in order to support the investment plans of the clients that will be included in the Development Law, has created a portal, “360 Funding”, through which the client can be informed about the programs in which he can based on its own Code of Activity (KAD) as well as the detailed data of the subsidy it will receive and the eligible costs that should be included in its investment plan but also through the definition of exclusive investment financing projects that will be submitted to the Development Law.

Referring to the access of small and medium enterprises to financing, Mr. Koutentakis underlined that the approval rate of loan applications to Piraeus Bank is around 70%, because the Bank accepted the financial statements during the evaluation of the applications. their pre-coronavirus image as well as their predicted future positive change so that there is a complete picture that will not do them any harm from the temporary effects of the coronavirus.

“We trusted our clients for their future forecasts. We intend to have the same tactics for the financing of the investment plans of the Development Law, in order to maintain the very high – for the time – approval rate of 70%”, he stressed.