YPOIK’s defense line for inflation

By Tasos Dasopoulos

With a time horizon for the stabilization and gradual de-escalation of imported inflation at the end of the second quarter of 2022, the Ministry of Finance is redefining its strategy for the business and household support grid, in the face of the wave of accuracy.

Inflation data for November showed that price increases on energy products have begun to shift to basic daily food items, such as meat, olive oil, poultry, bread, and services. The Ministry of Finance estimates that the November price hikes are the “iceberg tip” compared to those to come, with the Finance Minister yesterday talking about inflation of more than 5% in December.

The defense line of YPOIK is in two directions: The first is the absorption of fuel increases and the second is the increase of disposable income of businesses and households.

In the first phase, tackling the problem of price increases in energy products will extend subsidies to electricity and gas, which expire at the end of the month for the entire first quarter of the year. At the same time, the exemption of medium-sized companies from the suspension of payment of certain regulated charges (mainly SGIs) included in their accounts will be extended until the end of June.

As far as gas users are concerned, the suspension of network usage fees will be extended accordingly.

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Infogram

And these subsidies will be covered by the surplus profits from the auctions from the polluting rights, since it is one of the tools of the toolkit proposed by the European Union and has no budgetary impact.

In addition, to help businesses keep up with increases in production costs at retail prices, it will extend a series of support measures until 2022. This right exists under a recent decision by the EU Competition Commission to extend the special scheme. state aid, until the end of June 2022. In particular, it is planned:

– The extension of the measure of the coverage of fixed costs, satisfying a relevant request of a portion of companies. The measure was implemented last summer. About 31,000 companies distributed 450m-euro credit notes, with the aim of using them to cover tax and insurance liabilities. Recently, YPOIK received requests for an extension of the measure, as part of the amounts corresponding to the credit of each company would be lost if the measure expired at the end of the year. This is because the liabilities in insurance and tax liabilities were less than the amount of the credit. The extension is planned to be given for three months in order to spend an amount of about 80 million euros, which is left in total from the credit notes.

– The extension of the period of aid through RDP for working capital of small and very small enterprises by the NSRF for the entire first half of the year. 250 million euros have been allocated for the measure from the NSRF, which have not yet been spent in many regions of the country. With the extension of the measure, after the gradual withdrawal of the remaining support measures, the measure is considered to have the necessary time to achieve its goal.

– The permanent reduction of ENFIA for the majority of businesses and households which will be announced at the beginning of 2022 and will start to be paid from March in 10 or 12 installments. The relief from ENFIA is another income boost measure that will help with the consequences of price increases.

The refundable deposit

The extension of the repayment of repayable advances until June 2022, as there is the relevant possibility from the EU. The repayment of repayable advances of 3 billion euros out of the total 8.3 billion euros given to about 700,000 business normally started on January 31, 2022.

The Ministry of Finance originally planned to give an extension of one month, but for those who are thinking of repaying the repayable part of the aid in a lump sum, ensuring the additional discount of 15%. Now, there are thoughts for a horizontal extension, and for those who will repay in 60 installments.

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Source From: Capital

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