Strong interest for investments in the Greek economy – Funds of 77 billion euros are expected

LAST UPDATE: 21.42

Many sectors of the Greek economy present high growth potential, with the interest for investments being constantly growing. The opportunities that arise were analyzed at the 7th Delphi Economic Forum.

The Deputy Minister of Development and Investment, Nikos Papathanasis, stressed that for the first time since Greece joined the EU, we have increased aid rates throughout the country. He underlined that in the coming years resources of 77 billion will flow into the country. euros (from the Recovery Fund, the NSRF, etc.), which will leverage another 40 billion. euro. “We must not waste time with projects that are not mature and are not bankable,” said Mr. Papathanasis. He also referred to the facilities provided by the new investment law, but acknowledged that the state is heavy, has a strong bureaucracy and takes time to improve. “We have to burn the possibility of a bureaucracy being reborn,” he said meaningfully. He estimated that the country will enter the investment stage in 2023.

Teresa Farmaki, Managing Partner of Astarte Capital Partners, has shown the intense interest shown by international investors in Greece in recent years, emphasizing that this is a great opportunity for Greek companies to attract foreign institutional investors. “In Greece there is a great potential for development in many areas, the pandemic has delayed developments, but it makes the need to move forward greater,” commented Ms. Farmaki.

In a discussion moderated by Nektarios Notis, founder and CEO of Notice Content and Services and co-founder of ESGreece, Evangelos Kalamakis, Senior Investment Banking Director at Alpha Bank, explained that the Recovery Fund lowers the bar without investor financing. to change something in the rating process by banks. “Our job is to understand an investment plan, to identify the risks. It does not mean that because there is money an investment must be made, if it does not meet the conditions. Any plan that convinces will be financed,” said Mr. Kalamakis.

For his part, Christos Theodosiou, Manager of the Greek Branch of the BFF Banking Group, pointed out that factoring has recorded record growth in Greece. He explained that it fully supports the investment plans of the companies, multiplies the working capital of the companies, provides coverage of the investment risk and a package of services that helps the companies to reduce their operating expenses. Mr. Theodosiou estimated that a very large volume of projects is expected through the Recovery Fund.

In his own statement, Dmitry Pankin, president of the Black Sea Bank, stressed that a development bank can provide longer-term loans, ranking Greek companies as the best customers. He noted that in the coming years there will be a very large space for development agencies that will be able to cover all emerging risks, envisioning many opportunities in our country.

Papathanasis: We want to create a friendly investment environment

The Deputy Minister of Development and Investment, Mr. Nikos Papathanasis, Mr. Giusepe Giano, President of Euroxx Securities SA, Mr. Andreas Kallis, Vice President of Business Development Olayan Financing Company KSA, and Mrs. Katerina Karatza, CEO of Karatza and Associates, talked about the prospects and challenges in the field of investment in Greece. The discussion was moderated by the journalist of Action 24 Mr. Stamatis Zacharos, in the context of the discussions held at the Delphi Forum.

Mr. Papathanasis said that until 2019 there was no pro-investment climate in the country and that the reforms made with hard work changed the landscape in the country. The rhetoric is specific: we want to create a friendly investment environment. The Investment Law has helped to simplify and speed up procedures. “With hard work we change the bureaucracy, create a security zone between the state and the investor, and by keeping the executive state, we entrust to the private sector several processes related to investments and their control.” “The law on fair development transition aims to come from resources from the Structural Funds and not only from the public investment program or the Fair Development Funds,” he added.
He stressed that in Greece everyone is waiting for the start of the new development law while he expects in our country to be done several large projects in the energy sector. “Yes, we will become an energy hub, that is our goal,” he said, noting that there is strong investment interest in tourism, agri-food, manufacturing, innovation, digital upgrades and start-ups. Finally, he said that efforts are being made to bypass or improve bureaucratic procedures related to environmental issues or issues related to the archeological service.

Mr. Giano said that Greece is in the top 10 countries for investments and that foreign direct investment is on the rise. “We have 17-18 deals worth over 17 billion, sizes unprecedented for Greece,” he said characteristically. He stressed that the investment sector has changed and now there is a plethora of quality companies that want to invest in the country in sectors such as tourism, infrastructure, waste management, technology.

Mr. Kallis said that the Greek Government and SEV have made good enough moves to attract foreign investment to the country and to facilitate investments by Arab companies that show particular interest in investing in our country. Speaking about his company, he said that “they are open to cooperate with Greek companies that want to expand abroad”. He stressed that there is now a reverse brain-drain where executives return to Greece, which now offers good jobs.

Ms. Karatza said that what investors want is security and legal stability as they develop their business plan. He stressed that important steps have been taken in the country, such as the five-year limitation of tax obligations, the rapid establishment of public limited companies, etc., but noted that in the country there is a “resistance of people to the new”. The mentality must change in the post-pandemic era where some of the acquis (electronic signature, electronic stamp, teleworking and digitization) should not be lost and become a habit, while for large projects he believes that difficulties related to the country’s Constitution can be overcome, and gave the example of the Council of State not to suspend the execution of decisions.