Thessaloniki: A big financial “quiver” for Greek businesses
The assessment that “perhaps for the first time, the global economic environment is so friendly to the characteristics of the Greek economy” was expressed by the head of the Small Business Banking Department of Alpha BankSpyros Renterakos, speaking today from the podium of the 4th Family Business Congressin Thessaloniki.
In addition, according to Mr. Redetako, thanks to tools such as the Recovery Fund, the NSRF and the development law, businesses today have at their disposal a large financial “quiver” and the “pleasant headache” of having to decide which financial program to choose.
In 2023, he reminded, the NSRF budget for the green transition is estimated at 700 million euros, of which – according to information – about 50% will be the percentage of the grant, plus another 300 million for digital transformation. And these together with the development law.
Mr. Renterakos also said that the financial tool of the Recovery Fund “has no precedent”, as up to 50% of the investment plan can be financed from its resources, with an interest rate – today for SMEs – of only 0.35%, fixed for 12-15 years and equity participation 20%-30% and the rest is covered by the bank with commercial financing.
In this setting, he added, the advisory role of banks is also important, as what SMEs need is a sustainable investment plan, which they will co-shape together with their advisors, after identifying any weaknesses.
The small fish and synergies
So the “quiver” exists and the issue today is not the lack of financial tools. The issues are twofold: what Greek businesses need – and what they want – to do in order to take advantage of the opportunities, i.e. the clear strategic targeting, but also the conclusion of partnerships, as pointed out by the director of strategic development and operation of IDS Consulting, Spyros Ignatiadis.
“When in a globalized market you don’t have size, you can’t operate abroad. The big fish eats the small fish. Greek businesses are very small and if synergies are not created between them, we will not move forward. This is a difficult equation, but we have to see it,” he added.
As an example, he cited the example of a large retail chain with 148,000 sales points in eastern Eurasia, in which exporters tried to promote Greek wines. “They liked the product, agreed to try it and asked us to send them …75,000 bottles to sample! Where can we find such quantities? We looked at each other” he said characteristically and added that this is why synergies between Greek producers in all sectors are necessary.
100 million workers are employed by SMEs in Europe
Over 200,000 businesses are supported every year by the EU through its various financial tools, as pointed out by Panos Gredis, representative of the European Public Law Organization (EPLO) in Brussels, recalling that in united Europe the 25 million SMEs (85% of total) employ approximately 100 million workers.
Indicatively, he mentioned tools and programs such as COSME, Innofin (Horizon 2020), the EIC accelerator, the European Guarantee Fund (EFG), the EASi microloans, the “relief package” and the Invest EU Fund, under which about 10 billion euros are allocated for sustainable infrastructure, 6.6 billion for research, innovation and digitization, 6.9 billion for small and medium enterprises and 2.8 billion for social entrepreneurship.