E.C.: The funding for Greek SMEs is decreasing

Even more difficult access to funding for SMEs if the recommendations of Brussels for 2014-2020 are adopted - Stoppage in refinancing of existing loans - No beneficial provisions for many Greek companies

 
The access of Greek SMEs to funding will get even more difficult if the recommendations of the European Commission for 2014-2020 are adopted.

 
Beyond the geographical restrictions that will continue to apply to the distribution of available resources, the refinancing of existing loans to SMEs will not be feasible, while many Greek companies will be put out of the benefit provisions for distressed enterprises, since this characterization becomes even more restrictive.

 
The disbursement of funds will be made in installments, while the financing of working capital will not be as flexible as it currently is.

 
The Development Ministry is pushing for the increase of funding levels for distressed enterprises and the extension of the current regulation for six months.

 
Borrowing costs are not cheap, while a class of new financial instruments are not appropriate so much for SMEs but for financial institutions.

 
As discussed in a National Confederation of Greek Trade announcement, "instead for the new map to facilitate the access of SMEs to liquidity, it hampers the aid of larger companies, as it provides fewer grands and investment projects, while promoting the use of financial tools, so that state aid as less as possible and more targeted."


The memo was disclosed after the meeting of the Working Group on the Greek Banking Association about the planning of new financial instruments (FEI's) for the next programming period.