Th. Skylakakis: Innovation of the Recovery Fund, the increase of marketing expenses and working capital up to 30%

The Deputy Minister of Finance, Mr. Thodoros Skylakakis, referred to the initiatives taken by the government to strengthen the extroversion of small and medium-sized enterprises, during the Conference, entitled “Exports: A Force for Growth and Perspective for Greece”, where he participated as a keynote speaker.

The organizer of the Conference, which took place today, Thursday, December 2, 2021, online, was the Panhellenic Association of Exporters.

“Our tax policy, from the first moment, supports the extroversion, not with words, but with deeds”, Mr. Skylakakis pointed out, citing as typical examples the spectacular reductions made by the Government in the tax burden and in labor costs for business. The specific initiatives, as he said, concern the wider economic policy. However, they are of particular importance to export companies, as there is a kind of unfair competition within the country to claim productive resources from the informal economy.

“Someone who is in the informal economy does not show 100% of the income and has the opportunity to have employment resources and raw materials, without paying the corresponding tax or insurance contributions. This greatly limits the ability of the export company to attract executives. and workers, but also to buy raw materials, at low prices.And increases the prices, which otherwise would have paid. “Because those who pay in the informal economy do not pay. I want to do this as a remark, because it is rarely said, but it is one of the” elephants in the room “that prevents extroversion,” explained the Deputy Minister of Finance .

He added, “And in the next phase, in which the labor market will not have the unemployment rates we had and we will have tightness in the labor market, the greatest help we can provide to extroverted companies is the systematic battle we are waging for reducing the informal economy and moving as many businesses as possible to the formal economy “.

Regarding the initiatives taken by the financial staff to strengthen extroversion, within the framework of the Recovery Fund, he said: “Subsidies. At the beginning of the year, very large programs for small and medium-sized enterprises will come out for subsidies. Extroverted enterprises can also benefit from them, obviously.” These relate to digital switchover, energy efficiency, the primary sector, tourism, etc. “So we have a big subsidy package that will start,” he said.

Mr. Skylakakis underlined that for all export companies there is special treatment regarding the loans of the Recovery Fund. “An export company is eligible for Recovery Fund loans, even when 15% of its turnover is related to exports. Then it can receive loans of up to 30% of the investment, under the Recovery Fund. When it exceeds 45% ( s.s. turnover), can receive for 50% of the investment, the maximum loan rate that one can get from the Recovery Fund.These loans can be up to 15 years. They are loans with a very low interest rate , of the order of 0.35% and there is the possibility to add this aid, which hides the very low interest rate, with any other state aid (for example, from the Development Law) up to the maximum of the general exemption Regulation. “Strong incentives for small and medium-sized export companies (eg reducing income tax they pay) to make partnerships and mergers. The incentives will be finalized in the near future with a relevant bill.”

In addition, Mr. Skylakakis referred to an innovation presented by the loans of the Recovery Fund. “There is a great innovation, while they are investment loans, they consider as an integral part of the investment, up to 30% of the loan, marketing expenses or working capital. This is innovative and highly developmental. It was not in the plans until now. You understand. “How crucial marketing is, as well as partnerships so that we can penetrate foreign markets,” said the Deputy Minister of Finance.

Closing his position, he expressed the belief that the future will be very positive for the country’s export companies. “The Greek Government will be by your side in every way it can. And I believe that the coming years will be years when the Greek economy will literally enter a new era, with our export companies at the forefront,” he concluded.