Task Force warning that Greek SMEs are at risk of credit crunch

Horst Reichenbach’s group has detected a major problem in the financing of SMEs in its scheduled report on the Greek economy and sounds the alarm for specific measures to avoid a possible credit crunch for tens of thousands of SMEs.

According to the Task Force report banks in Greece find it difficult to provide liquidity in the system due to the non-completion of their recapitalization (should be completed in about 2 months), which together with the low creditworthiness of Greek businesses creates serious problems.

A European Commission member in Athens said that even the survival of many small businesses is at stake. What is impressive is that EU funds of 1.2 billion euros that can be directed at small and medium-sized businesses through European loans and guarantees from the structural funds, remain undisbursed.

The development and recovery of the Greek economy must continue through the optimum use of available resources and the continuation of structural reforms, one of the report’s conclusions says about the first quarter of 2013.

It adds that Greek authorities have made greater use of technical assistance to support a series of reforms, such as privatizations and the completion of recording land tenures.

The Task Force now supports a wider range of reforms in 12 key political areas. Moreover, it has begun to support sectors such as renewable energy, environmental protection and tourism.

The technical assistance coordinated by Reichenbach’s Group has paid off in public financial administration and tax management.