Greece applies for €3.56 bln
Loans included in the package will offer particularly favorable conditions to businesses
On Friday the government submitted the second disbursement request to the European Union’s Recovery and Resilience Fund, totaling 3.56 billion euros – which also includes loans – earlier than originally planned since it has already fulfilled the relevant three milestones.
As Alternate Finance Minister Thodoros Skylakakis stated in a press conference on the matter, Greece is among the first five countries that have submitted a second request for payment. However, he spoke of a big challenge ahead, as the time to complete the program ends in just four years, which is equal to the average delay of projects in previous years.
It is noted that the country has secured €17.8 billion in grants from the Recovery Fund and €12.7 billion in loans. However, he added, “The effective implementation of ‘Greece 2.0,’ the country’s investment momentum and the higher rate of growth recorded compared to other countries constitute the tripartite of reasons that we believe will keep us away from recession.”
Greece’s request on Friday, amounting to €3.56 billion, includes €1.72 billion for investments and €1.84 billion for loans. For its submission, the government had to meet 28 milestones.
Around €7.5 billion has been disbursed so far, including €4 billion in grants and €3.5 billion in loans. The first tranche, disbursed on April 8, also amounted to €3.56 billion (€1.72 billion for grants and €1.84 for loans). The pre-financing that was disbursed on August 9, 2021 was €3.96 billion. Therefore, if the second installment is disbursed, as expected, by the end of the year, more than €11 billion will have flowed into the public coffers.
The absorption of grants through the Public Investment Program has so far reached €1.65 billion.
Judging by the data presented on Friday, there is high interest not only in the subsidies, but also in the Fund’s loans, which are secured at a mean interest rate of 0.90%, with an average repayment period of approximately 10 years, meaning they are particularly beneficial for companies.
