The rush for the first EU loans

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The first batch of European loans from Recovery and Resilience Fund Next Generation EU companies will soon begin to finance private investment, with major Greek businesses working feverishly to prepare and present investment plans.

It is estimated that the first € 200 million will be committed by the end of the year, with the pace to be accelerated from 2022, raising the target to € 5 billion per year to meet the program’s strict timetable in 2026.

An important condition for promoting investment projects and issuing loans is the signing of a framework for cooperation between the state and commercial banks, which, according to the plan, will take place by the end of September. This structure will effectively represent an open invitation for all commercial lenders to sign a business agreement, paving the way for loans every time banks turn investment plans into contracts.

Banks assure that large private projects will be immediately included in the structure, but do not hide their concerns about the ability of the economy to absorb resources available before the deadline. These are loans of 12.7 billion euros exclusively for private investment, and not for working capital, which will require an additional 12.7 billion euros in bank financing and 6.6 billion euros for the participation of the enterprises themselves.

This is on top of another € 26.7 billion that will enter the country under the Multi-Year Financial Program 2021-27. (Known in Greece as ESPA); As part of a parallel process with the Ministry of Finance to activate the Recovery and Resilience Fund, the Ministry of Development is also pushing for the signing in September of a cooperation framework with the European Commission to launch a new seven-year ESPA. subsidy package.

In the run-up to this huge amount of money, the government is also concerned, so last week it decided to create a committee to oversee the progress of funding, register problems and find solutions for immediate implementation.





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