Commission Approves €450m Greek Covid-19 Support Scheme for Businesses

Photo source: European Commission

Tourism enterprises impacted by the coronavirus pandemic will be able to tap into 450 million euros of support funding after the European Commission approved the Greek scheme this week.

Besides tourism businesses, the relief funds will also be channelled into companies active in transport, construction and energy sectors and which were affected by Covid-19 restrictive measures.

The Commission said the scheme is “necessary, appropriate and proportionate to remedy a serious disturbance in the Greek economy”.

Approved under the State Aid Temporary Framework, the aid, to be allocated as subsidized loans, is aimed at helping beneficiaries address liquidity needs and continue activities during and after Covid-19.

Companies with up to 3,000 employees in the sectors mentioned above will be eligible for funding under the program.

Photo Source: @European Commission

The measure was approved under the State aid Temporary Framework, which foresees that support can be granted only in relation to new loans; interest rates applied to the subsidized loans are in line with the conditions set out in the Temporary Framework; and subsidized loans may be granted until 30 June 2021.

The funding will be implemented through local banks on behalf of the Greek Infrastructure Fund (InfraFoF), which also requires that banks provide complementary financing to public loans.

The scheme will be financed with InfraFoF resources, which is co-financed by the European Regional Development Fund and the Greek State.

InfraFoF is managed by the European Investment Bank.