Extra 30 mln euro EU support package to Greek construction companies

The “green light” for the support of small and medium enterprises in the construction sector in Greece, which have been affected by the coronavirus outbreak, has been approved by the European Commission.

It is worth noting that the scheme was approved under the provisional framework for state aid.

According to this, state support will be given in the form of loan guarantees and direct grants.

From there, the scheme will be implemented by the “EAT-TMEDE Business Guarantee for COVID-19”, a new Fund, which was established by the Hellenic Development Bank in collaboration with the Fund of Civil Engineers (TMEDE).

The measure will provide some guarantees for eligible working capital loans, which are granted by financial intermediaries.

In addition, the measure will make it possible to subsidize loan guarantee commissions in the form of direct grants.

Furthermore, according to the relevant communication, the Commission found that the scheme complies with the conditions set by the temporary framework.

In particular, with regard to loan guarantees,

(i) the aid will cover loan guarantees for working capital of limited duration and amount,

(ii) the annual interest rates on loans meet the minimum levels set out in the provisional framework; and

(iii) the measure reduces undertakes the state at a maximum of 80%. In the case of direct grants, the aid will not exceed EUR 1.8 million per company.

The support under the scheme will be granted no later than 31 December 2021.

The Commission has concluded that the measure is necessary, appropriate and proportionate to remove a serious disturbance in the economy of a Member State, in accordance with Article 107 (3) (b) TFEU and the conditions laid down in the provisional framework. On this basis, the Commission approved the measure under EU state aid rules.