By Tasos Dasopoulos
The private investment funded by the Recovery Fund will start sooner than expected, as commercial banks have been informing their customers since last summer about the limits and possibilities that are opening up and the preparation of a large number of investments has already progressed.
The agreements signed yesterday between YPOIK and the National Bank, Piraeus, Alpha Bank, Eurobank, Optima Bank and Pancretan Bank, as well as the one to be signed with the Cooperative Bank of Central Macedonia, increase the financing of private investments that will be strengthened by the Recovery Fund with 6.6 billion euros of bank capital. Together with the € 5 billion contributed by the EIB, under a similar agreement, and the € 1 billion from the EBRD, the total bank funds to finance private investment through the Recovery Fund have so far reached € 12.6 billion. .
The Ministry of Finance will immediately transfer 970m euros to commercial banks. The amount will be initially available to support investments at a rate of 30% to 50% of their budget. Once this amount is allocated to investments, according to the individual amount that each bank will receive, it will be renewed until the total of 12.7 billion of TAA loans is exhausted.
After the signatures with the commercial banks, the only thing left for the whole mechanism to be put into operation is to certify the independent evaluators of the State who will examine the parameters of each investment proposal and will give their rating based on the TAA regulation. . This rating will determine whether an investment will be supported by 30% or 50% of its budget. The certification process is expected to be completed in January, when the flow of investment proposals will begin.
Sources of YPOIK stressed that the banks have informed their customers since last summer about the process of strengthening investments through the Recovery Fund and had begun to prepare the first investment files. This is given that the aid will be given with the first in first out rule, ie the examination of proposals and the granting of aid will be given with time priority. When you submit a proposal first, you will be strengthened first.
The acquisition merger framework is expected
The investment proposals that the banks will collect can come from any kind of business regardless of activity, as long as the investment proposal falls into one of the five categories of investments covered by the Fund: Green investments, digital investments, innovation, extroversion and mergers.
The first four categories are ready to welcome investments with additional incentive and deduction from the taxable amount of twice the specific expenses that they will make for green and digital investments.
Investments in the category of mergers and acquisitions will have to wait for the relevant bill to be passed – in January -. Investments for the growth of small and medium-sized enterprises and the cooperation of even private companies, in addition to the low-interest loans of the Recovery Fund, have the benefit of reducing the resulting corporate tax by 30% for five years.
The official estimate is that the absorption from the loans of the Recovery Fund in 2022 would be 600 million euros, but the latest estimates want the loans that will be available by the end of next year to be more than double.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
