Financing SMEs and Entrepreneurs 2022

17. Greece

Key developments in SME financing

94.6% of Greek businesses (680 038) are micro-enterprises employing less than 10 employees, 4.8% (34 701) are small enterprises, 0.5% ( 3 819) are medium-sized enterprises, and 0.1% (522) are large enterprises

During 2020 and during the first quarter of 2021, economic activity declined significantly due to the COVID-19 pandemic and measures to reduce it. Real GDP shrank by 8.2% in 2020, mainly due to declining service exports and private consumption. The decline in consumer demand also resulted in the depletion of SMEs’ liquidity, which swiftly turned to different sources of finance. As a result, in 2020, new business lending to Greek SMEs increased 1.75 times in relation to 2019. The significant acceleration of bank lending to enterprises was also facilitated by the improvement of the conditions under which banks derived financial resources from the Eurosystem, as well as by the significant support provided by bank lending/co-financing schemes and guarantees offered by the Hellenic Development Bank.

However, despite the increase in new lending, outstanding credit to all businesses and to SMEs fell for the eighth year in a row, reaching EUR 66.6 billion in 2020. The continual decline of SME outstanding stock of loans coincided with a moderate economic recovery between 2014 and 2019. Nonetheless, in 2020 the decline in the outstanding stock of SME loans was driven by a significant removal of non-performing loans (NPLs) from Greek banks’ balance sheets (from 36.1% of total loans in 2019 to 28.5% of total loans in 2020) through the introduction in late 2019 of the “Hercules” asset-protection scheme.

Interest rates for both SMEs and large firms fell for the eighth year in a row in 2020, reaching 3.94% and 2.83% respectively, but the spread between the two increased (1.11) compared to 0.85 in 2018. This explains the risk-averse approach of Greek banks against SMEs particularly during the pandemic. Credit conditions tightened significantly and access to finance continues to be a central problem for Greek SMEs, according to the most recent ECB Survey on Access to Finance of Enterprises (SAFE), with 18% of Greek SMEs citing access to finance as the most important problem they currently face, compared to an EU-28 average of 9%. Furthermore, Greece shows the highest percentage of SMEs reporting difficulties in accessing bank loans (22%) and the highest proportion of SMEs reporting fear of application rejections in the EU.

The proportion of Greek SMEs that required collateral when they applied for a loan to a bank continued to decrease, to 18.4% in 2020 compared to 20.7% in 2018. The rejection rate declined to 12.3% compared to 2018 (20.5%) but increased slightly compared to 2019 (11.4%).

In 2020, alternative sources of finance were hard hit in Greece. Factoring decreased to EUR 1.89 million compared to EUR 1.96 million in 2019, leasing and hire purchase activities also decreased in 2020, reaching EUR 3.3 billion compared to EUR 4.2 billion in 2017. Venture capital was also strongly hit compared to 2019, declining by 46.7% in 2020 and reaching EUR 78.8 million from EUR 148.3 million in 2019.

The percentage of SME non-performing loans related to all SME loans was 28.5% in 2020 and has declined for the fifth year in a row since 2016, when it had reached 43.2%. Such decline is explained by public programmes such as the Hercules Programme that assists commercial banks in securitising and removing NPLs from their balance sheets. Despite this, in 2020, almost 20% of all business loans were non-performing in Greece.

As a response to the COVID-19 pandemic, the Greek government put in place several measures to tackle the impact of the crisis on SMEs. One of the measures in place was the “COVID-19 guarantee Fund” providing a guarantee coverage of up to 80% per loan. During the first cycle, the guarantee rate was set at 80% per loan, while the maximum guarantee was set at 40% for a loan portfolio to SMEs and 30% for a loan portfolio to large companies. An additional budget of EUR 780 million was added on the second cycle of the COVID guarantee fund, so the total available funds of the two cycles amounted to EUR 1.78 billion. In the second cycle of the Fund the provision of the guarantee paid by the companies is fully subsidised. 75% to 90% of the new loans of the second cycle of the Guarantee Fund are addressed with priority to MSMEs.

Table 17.1. Scoreboard for Greece

Indicator	Unit	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Debt
Outstanding business loans, SMEs	EUR billion	..	..	..	44.9	41.6	39.1	48.1	48.1	46.9	48.4	44.7	41.1	35.2	32.0
Outstanding business loans, total	EUR billion	102	124	124	117	113	101	97	95	89	88	82	76.4	67.3	66.6
Share of SME outstanding loans	% of total outstanding business loans	..	..	..	38.5	36.8	38.8	49.7	50.6	52.6	55.3	54.4	53.8	52.3	48.1
New business lending, total	EUR billion	..	36.5	36.3	20.7	29.4	21.8	24.3	14.9	6.9	5.8	7.3	11.4	7.9	16.2
New business lending, SMEs	EUR billion	..	12.5	13.0	4.4	5.2	4.1	3.7	2.3	1.2	1.1	1.1	1.2	1.3	3.5
Share of new SME lending	% of total new lending	..	34.2	35.6	21.4	17.8	18.9	15.0	15.6	17.0	18.4	15.5	10.18	16.05	31.8
Outstanding short-term loans, SMEs	EUR billion	..	..	..	..	..	..	..	18.1	17.6	18.8	17.0	15.1	13.4	9.5
Outstanding long-term loans, SMEs	EUR billion	..	..	..	..	..	..	..	30.1	29.3	29.6	27.7	25.9	21.7	22.5
Share of short-term SME lending	% of total SME lending	..	..	..	..	..	..	..	37.6	37.6	38.9	38.0	58.4	61.6	42.3
Government loan guarantees, SMEs	EUR billion	..	..	..	..	..	..	0.37	0.31	0.24	0.56	1.08	1.2	1.3	3.9
Non-performing loans, total	% of all business loans	4.60	4.30	6.70	8.70	14.2	23.4	31.8	29.4	31.0	30.3	30.5	28.6	25.5	19.1
Non-performing loans, SMEs	% of all SME loans	..	..	..	..	..	..	..	41.2	44.1	43.2	42.5	38.1	36.1	28.5
Interest rate, SMEs	%	6.57	6.82	4.62	5.53	6.77	6.87	6.51	5.80	5.38	5.32	4.91	4.66	4.31	3.9
Interest rate, large firms	%	5.32	5.71	3.52	4.27	5.74	5.92	5.77	5.55	4.82	4.61	4.20	3.81	3.64	2.8
Interest rate spread	% points	1.25	1.11	1.10	1.26	1.03	0.95	0.74	0.25	0.56	0.71	0.71	0.85	0.67	1.1
Collateral, SMEs	% of SMEs needing collateral to obtain bank lending	..	..	51.4	40.5	49.4	46.7	45.9	46.2	49.2	39.8	25.7	20.7	18.5	18.4
Percentage of SME loan applications	SME loan applications/ total number of SMEs	..	..	37.9	39.6	30.8	29.9	21.4	25.5	18.8	21.5	17.5	23.0	23.9	31.3
Rejection rate	1-(SME loans authorised/ requested)	..	..	25.8	24.5	33.8	28.3	26.0	21.5	19.9	18.2	16.2	20.5	11.4	12.3
Utilisation rate	SME loans used/ authorised	..	..	..	..	..	..	..	..	..	..	..	..	..
Non-bank finance
Venture and growth capital	EUR million	19.0	32.7	16.7	25.0	10.1	..	4.8	12.6	36.8	38.0	44.5	84.1	147.1	78.8
Venture and growth capital (growth rate)	%, Year-on-year growth rate	..	72	-49	50	-60	..	..	160	193	3	17	88.8	74.87	-46.86
Leasing and hire purchases	EUR billion	7.28	7.87	7.50	7.28	6.85	6.22	3.36	4.08	4.72	4.40	4.25	3.96	3.39	3.32
Factoring and invoice discounting	EUR billion	1.28	1.73	1.77	1.73	1.49	1.53	1.41	1.69	1.69	1.72	1.74	1.93	1.96	1.89
Other indicators
Payment delays, B2B	Number of days	..	25	34	30	35	40	43	41	36	47	47.	33	17	..
Bankruptcies, SMEs	Number	513	359	355	355	445	415	392	330	189	108	123	114	63	..
Bankruptcies, SMEs (growth rate)	%, Year-on-year growth rate	..	-30	-1	0	25	-7	-6	-16	-43	-43	14	-7	-23.17	..

Source: See Table 17.6.

SMEs in the national economy

718 558 enterprises, 99.9% of all Greek enterprises, are defined as SMEs, according to data from the European Commission. 94.6% of Greek businesses (680 038) are micro-enterprises employing less than 10 employees, 4.8% (34 701) are small enterprises, 0.5% (3 819) are medium-sized enterprises, and 0.1% (522) are large enterprises, 46.9%, of the workforce is employed by micro-enterprises while 83% of the workforce is employed by SMEs. Micro-enterprises and SMEs account for 19.7% and 56.7% of the value added in the economy, respectively. Compared to the EU‑27 average, SMEs and especially micro-enterprises are more numerous and more important to the Greek economy (see Table 18.2)1.

Table 17.2. Distribution of firms in Greece, 2021

By firm size

% Share	Number of enterprises		Number of employees		Value added
	Greece	EU-28	Greece	EU-28	Greece	EU-28
Micro	94.6%	93.3%	46.9%	29.6%	19.7%	18.7%
Small	4.8%	5.7%	23.3%	19.7%	15.9%	17.0%
Medium	0.5%	0.9%	12.8%	15.8%	21.1%	17.3%
SMEs	99.9%	99.8%	83.0%	65.2%	56.7%	53.0%
Large	0.1%	0.2%	17.0%	34.8%	43.3%	47.0%
Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

Source: European Commission’s SBA Fact Sheet 2021.

SMEs in Greece are defined according to the European Commission’s Recommendation 2003/361/European Parliament, Annex, Article 2 “Staff headcount and financial ceilings determining enterprise categories”, as follows:

SMEs are companies with at most 250 employees, annual turnovers not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million SME lending

SME lending

The financial crisis and the ensuing sovereign debt crisis had a profound impact on the Greek economy. Real GDP contracted by 26% between 2008 and 2015. In 2018 GDP expanded by 1.9%, the fastest GDP growth rate since the onset of the crisis, and grew for three consecutive years. During the first quarter of 2019, GDP continued to expand by 1.3% year on year. Unemployment rose from 7.8% in 2008 to a peak of 27.5% in 2013, but decreased to 23.5% in 2016, 21.5% in 2017, 19.6% in 2018 and 19.2% during the first semester of 2019 (according to Bank of Greece, Interim Monetary Policy Report, July 2019). During 2020 and during the first quarter of 2021, economic activity declined significantly due to the pandemic and measures to reduce it. Real GDP shrank by 8.2% in 2020, mainly due to declining service exports and private consumption. According to Bank of Greece forecasts, in 2021 the economic activity is expected to increase at a rate of 4.2%. The recovery is expected to be particularly dynamic in the second half of 2021, as a result of the higher - compared to limited - domestic demand during 2020 , the start of the National Recovery and Resilience Plan and the expected increase in tourism revenues compared to 2020. In 2022 and 2023 the rate of change in economic activity is projected to reach 5.3% and 3.9%, respectively.

New business lending to SMEs contracted severely as a result of the financial crisis. In 2008 and 2009, banks lent over EUR 12 billion to Greek SMEs. This figure decreased by 91.8% cumulatively from 2009 to 2016. In 2018, financial institutions in Greece lent EUR 1.16 billion to SMEs, a slight increase from 2017, which in turn saw an increase of 6% compared to 2016. New business lending for all enterprises followed a similar trajectory, decreasing by 84.2% from EUR 36.5 billion in 2008 to EUR 7.3 billion in 2017 followed by an increase to 11.4 EUR billion in 2018, almost the double of 2016 figures. In 2020, new business lending to Greek SMEs saw a boost as it increased 1.75 times in relation to 2019. The significant acceleration of corporate lending has been facilitated by the improvement of conditions under which banks derived financial resources from the Eurosystem, and the significant support provided by bank lending/co-financing schemes and guarantees offered by the Hellenic Development Bank to address the liquidity problems faced by Greek enterprises during the pandemic. Regarding the purpose of new loans disbursed in 2020 to domestic enterprises, more than half of the new loans were granted for working capital purposes (approximately 69.3%).

In contrast to the behaviour of new SME lending, the outstanding credit to all businesses continued to fall in 2020 to EUR 66.6 billion for the eighth year in a row. The reduction of the stock of loans is explained by the sale of a portfolio of non-performing loans of a significant amount by a systemic bank. The latter took place during 2020 through the "Hercules" program under the implementation of Law 4738/2020.

The continual decline of the stock of SME credit loans coincides with a moderate economic recovery between 2014 and 2019. 2014 marked the return of economic activity to positive growth rates (+0.8% year on year for Q12014) after six consecutive years of deep recession. Investments, strong absorption of EU structural funds, tourism and exports contributed to Greece’s year-on-year economic growth, as well as higher exports of goods and services and higher private consumption.

Greece’s primary balance (including bank recapitalisation) swung from a deficit of 2.4% of GDP in 2015, to a surplus of 3.5% of GDP in 2016, the first surplus in 44 years. This fiscal consolidation effort has been unprecedented, totalling 13 percentage points of GDP between 2009 and 2016. Over the same period, nominal GDP fell more than 25% and the IMF and EU programmes helped to close the external financing gap created by this decline in production. In 2017, Greece’s primary surplus was above 3.5% of GDP, outperforming its target of 1.75% of GDP. The same trend continued in 2018 when primary surplus increased to 4.3% of GDP but slightly fell to 4.1% in 2019. Because of the pandemic and the measures taken by thw government during this period, in 2020 the primary balance returned to deficit levels (6.7% of GDP). In the first months of 2021, the third wave of the pandemic made it necessary to continue the strict restriction of activities and led to the extension of the fiscal measures taken in 2020 and the adoption of new ones. Fiscal policy, as described in the 2021 Budget Report, has been complemented by additional expansionary interventions, which are expected to burden the budgetary outlook and public debt. According to the Fiscal Stability Program of 2021, the budget deficit is expected to remain high in 2021. Additionally, according to the European Commission's spring forecast (European Commission, European Economic Forecast, Spring 2021, May 2021), the general government primary deficit is projected to reach 7.3% of GDP in 2022.

Credit conditions

Interest rates for both SMEs and large firms fell for the eighth year in a row in 2020, reaching 3.94% and 2.83% respectively, but the spread between the two increased (1.11) compared to 0.85 in 2018. This is explained by the augmented risk perceived by Greek banks towards SMEs during the pandemic. This spread decreased between 2010 and 2014, but rose to 0.56 percentage points in 2015, remained stable to 0.71 percentage points in 2016 and 2017 and increased again in 2018. The spread remains low by international standards.

Credit conditions tightened significantly as a result of the financial crisis and access to finance continues to be a central problem for Greek SMEs, according to the most recent ECB survey (Analytical Report, 2021), with 18% of Greek SMEs citing access to finance as the most important problem they currently face, compared to an EU28 average of 9%. Greece still reports high external financing gap (which measures the perceived difference at various firm levels between the need for external funds across all channels, i.e. bank loans, bank overdrafts, trade credit, equity and debt securities, and the availability of funds).

Furthermore, Greece shows the highest percentage of SMEs reporting difficulties in accessing bank loans (22%) in the EU and the highest proportion of SMEs reporting fear of application rejections (SAFE Report, 2021, chart 40).

The proportion of Greek SMEs that required collateral when they applied for a loan to a bank continued to decrease to 18.4% in 2020 compared to 20.7% in 2018. The rejection rate declined to 12,3% compared to 2018 (20.5%) but slightly increase compared to 2019 (11.4%) according to the SAFE report.

Alternative sources of SME financing

The total outstanding amount of financing from leasing companies reached its peak in 2008 and, at EUR 7.8 billion, was an important source of financing for Greek enterprises. Between 2008 and 2013 though, financing from leasing companies halved to EUR 3.4 billion. In 2014 and 2015, leasing and hire purchase activities picked up, but decreased to EUR 4.2 billion in 2017 and to EUR 3.3 billion in 2020, remaining well below pre-crisis levels.

The total outstanding amount of loans from factoring companies to all companies increased to EUR 1.8 billion in 2009, before decreasing by 20.2% between 2009 and 2013. Factoring activities recovered since 2014, and reached EUR 1.9 billion in 2018, an 11% increase compared to 2017. In 2020 factoring in Greece decreased to EUR 1.89 million compared to 2019 (EUR 1.96 million).

Venture capital and growth capital investments totalled EUR 32.7 million in 2008, but decreased tremendously until 2012, when no venture and growth investments took place. Investments slightly recovered in 2013, reaching EUR 4.8 million. In 2015, the index reached EUR 12.6 million, and since then rose rapidly to EUR 44.5 million in 2017, a 20.6% increase from 2008. The increase trend continued in 2019 when venture and growth capital reached the amount of EUR 148.3 million but decreased by 46.7% in 2020 when it reached EUR 78.8 million.

Other indicators

Bankruptcies for all businesses declined by 30.2% in 2008 compared to 2007, remaining more or less stable in 2009 and 2010. Between 2010 and 2011, bankruptcies surged by 25.4%, reaching a peak in 2011. In 2012, the trend reversed with a 6.7% decline in the total number of bankruptcies and has continued to fall in 2015 and 2016 (by more than 40%), but they increased by 13.9% in 2017. In 2019, bankruptcies fell to 63 (data from the Hellenic Statistics Authority).

Credit to the private sector accounted for 35% of GDP in 2000 and rose to more than 100% of GDP in 2008, buoyed by low-interest rates, favourable financing conditions and a relatively fast growing economy (OECD, 2016). Credits proved hard to repay during the deep recession that followed, and Non-Performing Loans (NPLs) increased rapidly as a result. It is noteworthy that in 2007, 4.6% of all business loans were non-performing, that is, 90 days overdue or exposed to companies with negative net worth. In 2010, this percentage had reached 14.1%, and rose to 30.3% in 2016. SME-specific data on NPLs have been available since 2014, when 41.2% of loans to SMEs were classified as NPLs, increasing to 44.1% in 2015, but diminished to 43.2% in 2016. The percentage of SME non-performing loans related to all SME loans is 28.5% in 2020 and has declined for a fifth year in a row since 2016 when it reached 43.2%. Such decline is explained by a significant removal of NPLs from Greek banks’ balance sheets (from 36.1% of total loans in 2019 to 28.5% of total loans in 2020) through the introduction in late 2019 of the “Hercules” asset-protection scheme. The scheme, which was extended in mid-2021, enabled the sale of NPLs to a private securitisation vehicle that could subsequently sell more senior securities backed by these assets and guaranteed by the state. The programme will be accessible for financial institutions up to April 20222.

In 2020, almost 20% of all business loans were non-performing in Greece. In any case, the prevalence of NPLs seriously impeded the recovery of the financial sector and of the Greek economy.

B2B payment delays of Greek SMEs decreased to 17 days in 2019 compared to 47 days in 2017 and 33 days in 2018.

Government policy response

Direct loans

Several financial instruments with funding from EU structural funds are available to support lending to SMEs in Greece. The Hellenic Fund for Entrepreneurship and Development S.A. (ETEAN A.E.) was created in 2011 as a wholly owned state corporation in February 2011, with start-up capital of EUR 1.7 billion. It managed and implemented projects financed via the state budget, public investment programmes, and the EU’s Agricultural and Fisheries Funds.

The government, through the Hellenic Fund for Entrepreneurship and Development S.A., co‑financed direct loans to SMEs for investment and working capital purposes. Some of these direct loans targeted young entrepreneurs, export-oriented SMEs or specific sectors (tourism, desalination and waste management, innovation, etc.). The government typically co-financed the loan up to 50% of its value, but some sectoral loans were 33% co-financed.

In 2019 and according to Law 4608/2019, the Greek Government established the Hellenic Development Bank (HDB), which took place through the transformation and administrative capacity building of two existing entities, the Hellenic Fund for Entrepreneurship and Development S.A. (ETEAN S.A.) and its subsidiary, the New Economy Development Fund S.A. (TANEO SA). HDB’s scope is to improve SMEs’ access to finance, to foster innovation, to facilitate investments in infrastructure, to encourage equity investments and other alternative financing sources and to provide business support to SMEs, mainly through shared-risk loans and guarantee facilities, as well as financial expertise to the public sector. Since its establishment in 2019, HDB S.A. has been deployed new financial instruments programs by using both public and private funds for the support of SMEs. According to Law 4608/2019, HDB S.A. designs and implements financial instrument programs estimated to have significant impact on sustainable growth, regional development, job creation and investments, while at the same time being financially autonomous and sustainable.

During the 2007-13 EU programming period, The Entrepreneurship Fund provided low-cost loans to SMEs through co-funding schemes with commercial banks that were established after an open tender procedure. The Fund ran programmes to cover various SMEs in different sectors, providing funds for the implementation of business plans and the provision of working capital for development purposes. Specifically, the Entrepreneurship Fund introduced co-funding schemes as illustrated in Table 18.3.

Table 17.3. Entrepreneurship Fund I in Greece, 2011-18

Component/ beneficiary	Period	Max. loan amount	Interest rate	Loan duration Beneficiaries		Beneficiaries	Uptake
EUR	%	Years	Deadline	Number	EUR million
Island Entrepreneurship	2013-17*	30 000	0.0-2.8**	4	30 January 2017	1 537	33.6
Extroversion	2011-16	500 000	3.2	5-10	31 July 2015	223	87.3
Thematic Tourism, Desalination, Waste Management, Green Infrastructure, Green Applications, Renewable Energy Sources	2011-13	500 000	3.7	5-10	30 September 2013	371	75.7
Business Restarting: investment	2013-17*	800 000	0% I.R. offered by ETEAN SA and I.R. offered by participating Bank	5-12	30 January 2017	4 550	501.2
Business Restarting: working capital	2013-17*	300 000		4	30 January 2017
Intermediate Entrepreneurship Fund (working capital)	2017-18	800.000	0% I.R. offered by ETEAN SA and I.R. offered by participating Bank	4	-	2 005****	221.2****
Exceptional Measure to support SMEs in Kefalonia and Ithaki islands from the January 2014 earthquake ***	2014	19 950	0.0	4-10	30 June 2014	537	9.2

Note: *Data leading up to 25-5-2017. ** 0% if island’s population is less than 3.100 people. *** Loans Financed by the Island Entrepreneurship Fund. Number and uptake of beneficiaries are parts of number and uptake of beneficiaries of the Island Entrepreneurship Fund. *** Data up to 15-5-2019.

Source: www.etean.com.gr

Furthermore, during the 2007-13 EU programming period, ETEAN established the Agricultural Entrepreneurship Fund I, a programme co-financed by the EU’s Agricultural Fund for Rural Development (EAFRD) and the Greek Government, for a total of EUR 253 million. The fund aims to support business plans in the agricultural sector. By May 2016, 144 SMEs benefited from loans totalling EUR 8.6 million, with durations of 5-10 years and interest rates ranging between 3.8% and 4.2%.

Since December 2016, the Greek government has established the following funds to improve SMEs’ access to finance, combining national budget, the private sector and the ERDF’s funds:

Entrepreneurship Fund II

The Entrepreneurship Fund II, provides low cost loans to SMEs aimed at the establishment of new, innovative, export-oriented and dynamic enterprises, the development of existing businesses through their technological and organisational modernisation and innovations, the enhancement of Greek SME’s extroversion, and the enhancement of businesses and organisations active in the social economy. The Entrepreneurship Fund II began its operations during the 2nd semester of 2018 when the launch of its first programme “Entrepreneurial Financing” was published calling banks to participate in a co-investment scheme with equity proportion 60% (banks) – 40% (Entrepreneurship Fund II) for the provision of working capital loans to SMEs of for development reasons. Funding agreements with banks signed in March 2019 and since then SMEs can apply for a bank loan according to the rules of the programme and the available budget. Actually, the Entrepreneurship Fund II as it has been implemented so far is categorized in four (4) sub-programs whose financing terms are categorized as follows:

• Sub-program 1: Investments for development reasons.

• Co-investment proportion: 40% public funds – 60% private funds.

• Purpose of funding: Investment.

• Loan Amount: € 25.000 - € 1,5 million.

• Interest Rate: Average interest rate (0% interest rate offered by HDB S.A. and interest rate offered by participating Banks according to market conditions).

• Collateral: Up to 120% of loan’s amount.

• Duration: 5-10 years.

• Grace period: 6 to 24 months (interest accrued).

• Installments: Agreed between between bank and client.

• Fees charged: up to 0,5% but they shall not exceed EUR 4.000/contract.

  Outcomes of Subproject 1 (31-5-2021): Total number of approved loans: 721. Total volume of loans: EUR 119.3 million3.

• Sub-program 2: Provision of working capital.

• Co-investment proportion: 40% public funds – 60% private funds.

• Purpose of funding: Working Capital.

• Loan Amount: € 10.000 - € 500.000.

• Interest Rate: Average interest rate (0% interest rate offered by HDB S.A. and interest rate offered by participating Banks according to market conditions).

• Collateral: Up to 120% of loan’s amount.

• Duration: 24 up to 60 months.

• Grace period: 6 to 24 months.

• Installments: Agreed between between bank and client.

• Fees charged: up to 0,5% of the loan amount but they shall not exceed €4.000/contract.

  Outcomes of Subproject 2 (31-5-2021): Total number of approved loans: 1.352. Total volume of loans: EUR 254.3 million4.

• Sub-program 3 (dealing with COVID-19 crisis): Provision of working capital with interest rate subsidy.

• Co-investment proportion: 40% public funds – 60% private funds.

• Purpose of funding: Working Capital with interest subsidies for up 2 years.

• Loan Amount: 10.000 – 500.000 € and up to 50% of their turnover or up to 50% of current year’s orders.

• Interest Rate: Average interest rate. Actually, 0% interest rate is offered by HDB S.A. and an interest rate is offered by participating banks according to market conditions. The interest rate of each loan for the first two years will be subsidized 100% from the Entrepreneurship Fund II resources. Interest rate shall not exceed 8% during the subsidies period (2 years).

• Duration: 24 to 60 months.

• Possibility for a grace period up to 6 months.

• Installments: Agreed between bank and client.

• Fees charged: up to 0,5% of the loan amount but they shall not exceed €4.000/contract.

  Outcomes of Subproject 3 (31-5-2021): Total number of approved loans: 10.185. Total volume of loans: EUR 1.3 billion5.

• Sub-program 4 (dealing with COVID-19 crisis): Provision of working capital with interest rate subsidy.

• Co-investment proportion: 5% public funds – 95% private funds.

• Purpose of funding: Working Capital with interest subsidies for up 2 years.

• Loan Amount: 10.000 – 500.000 € and up to 50% of their turnover or up to 50% of current year’s orders.

• Interest Rate: Average interest rate. Actually, 0% interest rate is offered by HDB S.A. and an interest rate is offered by participating banks according to market conditions. The interest rate of each loan for the first two years will be subsidized 100% from the Entrepreneurship Fund II resources. Interest rate shall not exceed 8% during the subsidies period (2 years).

• Duration: 24 to 60 months.

• Possibility for a grace period 6 to 12 months.

• Installments: Agreed between bank and client.

• Fees charged: up to 0,5% of the loan amount but they shall not exceed €4.000/contract.

  Outcomes of Subproject 4 (31-5-2021): Total number of approved loans: 7.129. Total volume of loans: EUR 429,9 million6.

Outcomes Entrepreneurship Fund II – Aggregated results (31-5-2021): Total number of approved loans: 19.387. Total volume of loans: EUR 2.1 billion.

Energy Saving Fund II

The Energy Saving Fund II, aiming to improve energy efficiency, support upgrade of housing and the use renewable energy sources and intelligent energy management for the benefit of the environment. It indirectly helps SMEs involved in related industries. The fund, in cooperation with interested banks, will provide low-interest loans, guarantees, interest rate subsidies or other incentive schemes to the final recipients (households, enterprises). Aid is delivered to beneficiaries either through grants or grants coupled with interest-free or low-interest loans. During 2018 the first launch of the Energy Fund II was made public, followed by an evaluation period for the applications received.

West Macedonia’s Development Fund

The West Macedonian’s Regional Development Fund, which was created in July 2017 under an agreement between the Hellenic Ministry for Economy and Development, ETEAN S.A. (“Hellenic Fund for Entrepreneurship & Development S.A.”) and the Region of West Macedonia. The fund’s initial budget was EUR 10 million (half from national funds, half from the Region of Western Macedonia’s funds), to be utilised for the provision of loans and guarantees to SMEs (mainly micro and small enterprises) located in the region of West Macedonia. During 2021 HDB S.A. launched a call for expression of interest by financial intermediaries/banks7 to create a co-investment scheme of a proportion 40% (public funds) – 60% (private funds) for the provision of loans between EUR 5.000 - EUR 50.000 to micro and small enterprises situated in the region of West Macedonia. The interest rate will be subsidized by 100% for the first two (2) years of each loan’s duration and will be fixed. During such period, companies will pay only arrears (not interest rate) under the fulfilment of the condition of keeping their current workforce. The maximum duration of the loans is up to five (5) years, including a possible grace period if an enterprise will request it. The interest rate that will be subsidized for two years.

Subsidy Loans for Existing SMEs Loans Affected by the COVID-19 Virus Pandemic Measures:

The program concerns the subsidy of loans for Existing SMEs Loans Affected by the COVID-19 virus pandemic measures. The public expenditure of this Call amounts to € 750 million. The program provides direct subsidies to SMEs for covering current contractual interest, as well as the corresponding contribution of Law 128/75 of the loans of eligible companies, up to € 800.000 per company. The subsidy applies to current overdue loans, bond loans and credit agreements, including securitized loans and credits as well as transfers due to loans transferred and credits according to national legislation. Eligible companies must be creditworthy SMEs operating in sectors which face serious financial difficulties and urgently need liquidity support to overcome the economic crisis because of COVID-19. The program was launched in April 2020 by the Executive Agency for Management and Implementation of Industry, Commerce and Consumer Protection which is in charge for transferring all resources required. Outcomes (July 2021): Total number of approved loans: 31.624. Total volume of loans: EUR 216.7 million8.

Loan guarantees

During the economic crisis caused by COVID-9 pandemic in 2020 and following the European Union’s temporary framework for the provision of state-aid (European Commission, C(2020) 1863, 19 March 2020 as amended and as currently is applicable), the HDB S.A. under close cooperation with the Ministry for Development and Investments established the “COVID-19 Guarantee Fund”. The program aimed at guaranteeing working capital loans issued by the banks in favour of Small and Medium sized Enterprises (SMEs), as well as the large firms of the private sector. Guarantee Fund is co-financed by the European Regional Development Fund (ERDF) and the Greek State in the framework of National Strategic Framework 2014-2020. It concerns a portfolio guarantee fund which provides a guarantee rate up to 80% per loan. During the first cycle, the guarantee rate is set at 80% per loan, while the maximum guarantee is set at 40% for a loan portfolio to SMEs and 30% for a loan portfolio to large companies. Eligible were companies operating in Greece which on 31.12.2019 were not considered as undertakings in difficulty according to point 18 of article 2 of Regulation 651/2014), are considered as having the ability to receive a loan in accordance with bank’s credit policy and the internal procedures of credit institutions, they have fulfilled their obligations against the banking system (have a debt of <90 days) on the date of application or on 31.12.2019. With the activation of the second cycle, the budget of the COVID-19 Business Guarantee Fund was strengthened, with resources from the National Public Investment Program (NIP) and co-financed by the European Regional Development Fund (ERDF), through the Entrepreneurship and Innovation Program 2014-2020 (EPAnEK) with an additional budget of € 780 million, so the total available funds of the two cycles of the Business Guarantee Fund COVID-19 now amount to € 1.78 billion. The provision of the guarantee paid by the companies is fully subsidized in the second cycle of the Fund, subject to the limitations of state aid. It is recalled that the state aid scheme covered by the 1st and 2nd Cycle of the COVID-19 Business Guarantee Fund is the "Temporary framework for state aid measures to support the economy during the current outbreak of COVID-19 disease", as in each case. A point of differentiation compared to the forst cycle is that 75% to 90% of the new loans of the 2nd cycle of the CoViD-19 Guarantee Fund, are addressed with priority, to medium, small and micro enterprises. Recently the start of the third cycle of the COVID-19 Guarantee Fund was announced and is expected to boost the liquidity of micro-enterprises with loans of up to € 50,000 and a duration of up to five (5) years. The “COVID-19 Guarantee Fund” outcomes as of May 2021 evidenced that 13.931 loans were approved (95,5% SMEs) amounting to EUR 5.9 billion (58% SMEs)9.

In March 2019 the Hellenic Development Bank SA announced the beginning of a new programme with the cooperation of Norway called “Business Innovation – Greece – Innovation Norway” which provides guarantees to business loans and is aimed enterprise whose business plans can be supported with the guarantee of the Hellenic Development Bank for a loan. The guarantee provided under the project is up to 80% of the loan amount. The amount of the loan is between 25,000 euros and 1,000,000 euros. The duration loans is estimated up to 10 years, with 24 months grace period. For each guarantee, a commission is paid to the Hellenic Development Bank by the borrower. The commission is calculated as follows: (loan amount) x (0.4%) x (years of loan duration) x (guarantee rate 80%). Where the loan is to be used as part of a financing scheme financed by another State aid scheme, the amount of the loan for which the guarantee is provided shall not exceed 40% of the total eligible amount of the financial scheme. Categories of projects eligible for funding are the following:

• Innovation in green industry - Reduction and reuse

• Blue Growth - Diversification of businesses

• Information and Communication Technologies (ICT)

The amount of funding for SMEs (small and medium-sized enterprises) is up to 50% of the cost of implementing the project, while for large enterprises it is less than 50%. The amount of funding that a company can apply for is between EUR 200 000 and EUR 1.5 million per project. Small and medium-sized businesses can also request smaller amounts from EUR 50 000 to EUR 200 000 per project.

Furthermore, in 2017, the Hellenic Ministry for Economy & Development and its expertise agency Hellenic Fund for Entrepreneurship and Development S.A., predecessor of the Hellenic Development Bank S.A., created the following funds to enhance SME access to finance under loan and guarantee instruments:

• The Intermediate Entrepreneurship Fund was set up with a total budget of EUR 384 million. Half of this budget, EUR 192 million, came from loans successfully paid during the implementation period of its predecessor, the Entrepreneurship Fund I. Two financial instruments were established: "Business Restart" and "Guarantee Fund". It should be noted that the loans granted by the “Business Restart” instrument have favourable interest rates, which are on average less than 4.5%. Additionally, 50% of a loan’s value is offered interest-free.

• During the 2007-13 EU programming period (which was later extended to 2016), ETEAN’s Entrepreneurship Fund I covered SMEs’ needs in the form of loans and guarantees. Guarantees were administered using ERDF and national funds for a total of EUR 417 million (up to October 2016). These funds were allocated as public expenditures to cover the Entrepreneurship Fund’s actions along with co-investments of approximately EUR 830 million from the banking sector.

In addition, the following programmes were implemented during 2017-2018 with the cooperation of financial intermediaries (mainly banks):

• COSME 2014-2020 – Employment and Social Inclusion (EaSI): Greek banks signed agreements with the European Investment Bank (EIB) under the framework of the Loan Guarantee Facility (LGF) of the EU’s programme called Competitiveness SMEs (“COSME”). This support mechanism aims to improve SMEs’ access to loan funding through guarantees for loans up to EUR 150 000. LGF favours the development of complex high-risk financial instruments, such as the securitisation of SME debt finance portfolios. EIB signed agreements in 2016 with the National Bank of Greece (EUR 100 million) and Eurobank (EUR 130 million) and in 2017 with Alpha Bank (EUR 50 million) and Piraeus Bank (EUR 170 million). In addition, EIB signed agreements with Greek cooperative banks Cooperative Bank of Karditsa (EUR 5 million) and Pancretan Cooperative Bank (EUR 15 million) under Employment and Social Inclusion (“EaSI”), EU’s programme for the provision of microloans to very small and small companies.

• The Hellenic Export Credit Insurance Organization provides short-term and long-term export credit insurance to SMEs through the following programmes:

  • Short-term export credit insurance programme: insurance of short-term export credits (up to 12 months) against business and governments non-payment risks. Insurance covers exports of both goods and services. The OECD Short-term Export Credit Insurance Programmes are "Individual Loans" and "Global Export Insurance GLOBAL".

  • Long-term export credit insurance programme: this programme concerns export credit insurance against business and government non-payment risks in the medium- (2-5 years) to long-term (over 5 years).

Support to venture capital

New Economy Fund (TANEO) S.A.

The aim of the TANEO S.A., founded in 2003, was the participation on a minority basis in venture capital funds, venture capital companies, and similar schemes governed by the legislation of EU member states. These investment schemes are managed by agencies from the private sector, following a market-based approach, and must invest exclusively in innovative Greek SMEs.

Since its establishment, TANEO has participated in 11 venture capital funds that manage a total EUR 268 million, providing equity to almost 35 SMEs operating in various sectors, such as information and communication technologies, biotechnology, health, industrial materials, energy, food or beverages and services. Table 18.5 below provides an overview of TANEO’s annual investments between 2007 and 2014.

Table 17.4. TANEO’s venture capital investments in Greece, 2007-2014

Year	2007	2008	2009	2010	2011	2012	2013	2014
Funds' investments	1.6	8.4	17.8	14	12	10.5	9	4

Source: TANEO S.A. (www.taneo.gr)

In December 2016, TANEO SA merged with ETEAN SA and in January 2017 became a subsidiary of ETEAN S.A. The merger created a large development group to expand access to finance for SMEs.

Furthermore, during 2018 TANEO SA was funded: (a) with the amount of EUR 50 million for its participation in newly established venture capital schemes to invest in Greek R&D enterprises in the 4th Industrial Revolution; (b) with the amount of ΕUR 50 million for its participation in investment schemes aiming at the development of production and promotion of branded products "Made in Greece"; (c) with the amount of EUR 150 million for its participation in investment schemes aiming at the establishment of companies that need restructuring or reorganization and are active in the production and processing; (d) with the amount of EUR 450 million for its participation in newly established venture capital schemes which would invest through convertible bonds and bonds to SMEs. Subsequently, EUR 700 million in total will be invested in risk finance instruments through TANEO SA to Greek SMEs.

In 2019 TANEO became part of the Hellenic Development Bank S.A. which was established by the Greek Government with Law 4605/2019 and renamed as the Hellenic Development Bank of Investments S.A.

Hellenic Development Bank of Investments S.A. (HDBI S.A.)

HDBI S.A10. is the successor company of TANEO S.A. It was established in 2019 with the scope to contribute to the provision of equity funds to well Greek SMEs with a high potential to grow. Since its establishment, HDBI S.A. has launched the following calls for expression of interest by financial intermediaries with relative expertise:

• Green Greek Funds

Interested parties were invited to submit their proposals for the establishment and management of several venture capital – private equity co-investment schemes which should be managed by private sector entities with market criteria. Such entities invest though equity participation and/or convertible bonds and/or rights bearing bonds, in new or existing SMEs or Special Purpose-Project Companies, which are activated in in Greece, aiming at energy or other natural resources conservation (efficiency), the circular economy (recycling, biomass/biogas for energy production etc. etc.) or the production of energy from renewable sources, etc. Public participation is defined at € 400 million.

Restructuring made in Greece 4IR Debt Fund:

Interested investors and fund managers with the intention to set up Venture Capital Mutual Funds or similar venture capital entities were invited to submit their proposals for the participation in such co-investment scheme. Public participation is defined at € 700 million, aiming to mobilize more than € 1 billion for investments in SMEs.

Co-investment Fund

Interested investment schemes such as venture capital or private equity funds from Greece and abroad were invited to submit their proposals for co-investment in the form of equity or quasi equity schemes for the support of SMEs or mid-caps activated in Greece. Public participation is defined at € 100 million.

AccelerateTT Fund

The action focuses on Greek innovative start-ups with extrovert characteristics and prospects of significant growth potential and to support Technology Transfer. The objective of the fund is the establishment of venture capital funds with the participation of Private Investors. HDBI invited interested parties to submit their proposals for the establishment and management of such funds which will invest in innovative start-ups with high potential to grow, though equity participation, convertible bonds or rights bearing bonds activated in Greece.

EquiFund

EquiFund was established by the Deputy Minister of Economy and Development in December 2016. As a participating fund, it provides equity to enable high value-added investments, through an initial budget of EUR 320 million, funded in part by the Operational Program for Competitiveness, Entrepreneurship and Innovation of the ERDF (EUR 200 million). The European Investment Fund (EIF) and European Investment Bank (EIB) provide an additional EUR 60 million each to Equifund under the framework developed by the European Strategic Investment Plan (ESIF). EIF manages the fund. Equity is provided by intermediary holding fundschosen through an open competitive procedure. Specifically, EquiFund will invest in the following three key areas:

• Research and innovation (technology transfer – innovation window);

• General entrepreneurship for start-up enterprises (early stage);

• General entrepreneurship for enterprises in development (scale-up/growth).

A special emphasis will be accorded to the strategic sectors of the Greek economy such as tourism, energy, agri-food, the environment, supply chain, information and communication technologies, health and pharmaceutical industry, creative and cultural industries and materials and construction.

In early 2018, the evaluation process was finalised and eventually nine funds were chosen to provide equity to Greek SMEs11

Targeted sectors include all sectors with a special focus on the food and beverage, agri-business, tourism and hospitality, environment and energy efficiency sectors. At the end of 2019, nine selected funds by EIF invested a total amount of 216 million euro to 74 SMEs, mainly start-ups in the ICT sector activating in applications for hospitality, health technologies, transportation, internet of things, travel-tech, e-commerce, software as a service, big data, business services, real estate etc.

Table 17.5. Investments of Equifund by sector

Industry	Number	Investment in million Euros	Investment % (over total)
Hospitality	3	71.18	32.98%
Internet of Things	3	28.98	13.43%
ICT	4	26.95	12.49%
e-commerce	3	13.38	6.20%
TravelTech	5	10.63	4.92%
FinTech	2	10.17	4.71%
Agrotechnology	3	8.55	3.96%
Health Technology	6	7.47	3.46%
Software	4	4.92	2.28%
Transportation	5	4.33	2.01%
Software as a Service	4	4.06	1.88%
Big Data	3	3.64	1.69%
Business Services	2	3.5	1.62%
EdTech	4	3.27	1.52%
Real Estate	1	2.96	1.37%
Medical devices and equipment	1	2.64	1.22%
SmartCities	1	1.64	0.76%
Total	74	215.84

Source: Hellenic Ministry for Development and Investments, December 2020, http://eysed.gge.gov.gr/wp-content/uploads/2021/05/paradoteo_1-meletis-gia-exypni-exeidikefsi.pdf.

Figure 17.1. Trends in SME and entrepreneurship finance in Greece

Source: See table 17.6

Statlink

Table 17.6. Definitions and sources for Greece’s scoreboard

Indicator	Definition	Source
Debt
Outstanding business loans, SMEs	Outstanding amounts (stocks) end of year. Including overdrafts, lines of credit, loans, MFI holdings of corporate bonds, syndicated loans, securitised loans and securitised corporate bonds. Refers to business Loans only. Self-employed and farmers are not included.	Bank of Greece, Statistics, Monetary and Banking Statistics, Credit Aggregates. http://www.bankofgreece.gr/Pages/en/Statistics/monetary/financing.aspx https://www.bankofgreece.gr/RelatedDocuments/Credit_to_domestic_non_MFI_residents_by_domestic_MFIs_excluding_BoG.xls (item 2.1.3β)
Outstanding business loans, total	Outstanding amounts (stocks) end of year. Including overdrafts, lines of credit, loans, MFI holdings of corporate bonds, syndicated loans, securitised loans and securitised corporate bonds. Refers to business Loans only. Self-employed and farmers are not included.	Bank of Greece, Statistics, Monetary and Banking Statistics, Credit Aggregates. http://www.bankofgreece.gr/Pages/en/Statistics/monetary/financing.aspx https://www.bankofgreece.gr/RelatedDocuments/Credit_to_domestic_non_MFI_residents_by_domestic_MFIs_excluding_BoG.xls (item 2.1.3)
New business lending, total	Amounts during each year including securitised loans and corporate bonds. Flows arise from changes in stocks during each year adjusted for loan write-offs, impairments of securities, foreign exchange differences and reclassifications/loan transfers.	Bank of Greece
New business lending, SMEs	Amounts during each year including securitised loans and corporate bonds. Flows arise from changes in stocks during each year adjusted for loan write-offs, impairments of securities, foreign exchange differences and reclassifications/loan transfers.	Bank of Greece
Short-term loans, SMEs	Outstanding amounts (stocks), end of year, including loans with a duration up to 5 years.	Bank of Greece
Long-term loans, SMEs	Outstanding amounts (stocks), end of year, including loans with a duration more than 5 years.	Bank of Greece
Government loan guarantees, SMEs	Outstanding balance guaranteed at the end of each year as referred to the Ministry of Finance - Public Debt's periodical editιons (as regards ETEAN S.A. only).	A) For Guarantees to European Investment Bank see also: Ministry of Finance, 2021 State Budget introductory Report, November 2021, p.162, https://www.minfin.gr/documents/20182/14940417/%CE%95%CE%99%CE%A3%CE%97%CE%93%CE%97%CE%A4%CE%99%CE%9A%CE%97+%CE%95%CE%9A%CE%98%CE%95%CE%A3%CE%97+2021.pdf/9df8e59d-dc88-47f6-9285-b7edfc69e220 Note: We report Outstanding Balance, not Total guarantees provided. B) Public Debt's bulletin periodical editιons: https://www.minfin.gr/web/guest/deltia-demosiou-chreous Bulletin March 2021 (No 101) Most recent data, page 6 https://www.minfin.gr/documents/20182/16270301/Bulletin+No_101.pdf/a6997aed-dcab-439d-b407-f37ab140623b a) Entrepreneurship loans (EIB loans to greek banks, guaranteed by the government) b) Guarantees in the context of COVID-19 pandemic, excluding HDB Guarantees c) Hellenic Development Bank (HDB) Guarantees (ex ETEAN and related Funds)
Non-performing loans, total	Loans past-due 90 days. The EBA definition includes exposure to companies which may not be able to meet their obligations without liquidation of collateral. Such loans are about 25% of the number of Non-performing Exposures according to BoG, Monetary Policy Report 2014-15, p. 122	Bank of Greece. There is a break in the series for NPLs. As of 2017, "on Balance sheet" items are only included in NPLs. Before 2017, both "on and off balance sheet" items were included.
Non-performing loans, SMEs	Loans past-due 90 days. The EBA definition includes exposure to companies which may not be able to meet their obligations without liquidation of collateral. Such loans are about 25% of the number of Non-performing Exposures according to BoG, Monetary Policy Report 2014-15, p. 122	Bank of Greece
Interest rate, SMEs	New loans to non-financial corporations, yearly weighted average, defined maturity, for all maturities, floating interest rate or rate fixed up to 1 year	Bank of Greece, Table IV.23.4
Interest rate, large firms	New loans to non-financial corporations, yearly weighed average, defined maturity, for all maturities, floating interest rate or rate fixed up to 1 year	Bank of Greece
Collateral, SMEs	ECB, Statistical Data Warehouse, April 2017 "SAFE" Survey, SMEs, question 10, Bank Financing conditions: Collateral requirements, Net percentage (increased minus decreased over the past six months)	ECB, SAFE.H.GR.SME.A.0.0.0.Q10.10E.NN.AL.WP https://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=235.SAFE.H.GR.SME.A.0.0.0.Q10.10E.NN.AL.WP Period: 2020-H2
Percentage of SME loan applications	ECB, Statistical Data Warehouse, April 2017 "SAFE" Survey, SMEs, question 7A, Financing applied, Bank loan - "Applied" - Including not applicable responses - Weighted percentage of responses	ECB, SAFE.H.GR.SME.A.0.0.0.Q7A.FBLN.R1.AL.WP Filter link: https://sdw.ecb.europa.eu/browse.do?org.apache.struts.taglib.html.TOKEN=6ccf6a9d0b8e1a0c89a5a62b5863838e&df=true&ec=&dc=&oc=&pb=&rc=&DATASET=0&removeItem=&removedItemList=&mergeFilter=&activeTab=SAFE&showHide=&REF_AREA.196=GR&SAFE_ITEM.196=FBLN&SAFE_ANSWER.196=R1&MAX_DOWNLOAD_SERIES=500&SERIES_MAX_NUM=50&node=9138776&ajaxTab=true Series Data: https://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=235.SAFE.H.GR.SME.A.0.0.0.Q7A.FBLN.R1.AL.WP Period: 2020-H2
Rejection rate	ECB, Statistical Data Warehouse, April 2017 "SAFE" Survey, SMEs, question 7B,"Applied but was rejected", Weighted percentage of responses by enterprises that applied for a bank loan	ECB, SAFE.H.GR.SME.A.0.0.0.Q7B.FBLN.S4.AL.WP Filter link: https://sdw.ecb.europa.eu/browse.do?org.apache.struts.taglib.html.TOKEN=385dd8e6ec4d74622a45255864868ade&df=true&ec=&dc=&oc=&pb=&rc=&DATASET=0&removeItem=&removedItemList=&mergeFilter=&activeTab=SAFE&showHide=&REF_AREA.196=GR&SAFE_QUESTION.196=Q7B&SAFE_ITEM.196=FBLN&SAFE_ANSWER.196=S4&MAX_DOWNLOAD_SERIES=500&SERIES_MAX_NUM=50&node=9138776&ajaxTab=true Series Data: https://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=235.SAFE.H.GR.SME.A.0.0.0.Q7B.FBLN.S4.AL.WP Period: 2020-H2
Non-bank finance
Venture and growth capital	Annual total (flows), seed, start-up, later stage venture and growth capital (excludes buyouts, turnaround, replacement capital).Growth capital is included.	For the 2014-2017 period, data include only total invested amounts per year by funds supported by EIF, in companies whose legal seat is Greece or whose main operations are in Greece (data received by EIF).
Leasing and hire purchases	Leasing companies loans – to domestic non-financial corporations, total outstanding amounts at the end of period, leasing activity of credit institutions not included.	Bank of Greece, Statistics, Non Monetary Financial Institutions, Aggregated Balance Sheet of Other Financial Institutions: https://www.bankofgreece.gr/en/statistics/non-monetary-financial-institutions/financial-statements-of-other-financial-institutions Aggegated Balance Sheet of leasing companies: https://www.bankofgreece.gr/RelatedDocuments/Aggregated_balance_sheet_leasing_companies.xls Note: Loans to non-financial corporations by leasing companies are a subtotal of Deposits and Loans Item of Aggregated Balance Sheet
Factoring and invoicing	Factoring companies’ loans to domestic non-financial corporations, total outstanding amounts at the end of period, factoring activity of credit institutions not included.	Bank of Greece, Statistics, Non Monetary Financial Institutions, Aggregated Balance Sheet of Other Financial Institutions: https://www.bankofgreece.gr/en/statistics/non-monetary-financial-institutions/financial-statements-of-other-financial-institutions Aggegated Balance Sheet of factoring companies. https://www.bankofgreece.gr/RelatedDocuments/Aggregated_balance_sheet_factoring_companies.xls Note: Loans to non-financial corporations by factoring companies are a subtotal of Deposits and Loans Item of Aggregated Balance Sheet
Other indicators
Payment delays, B2B	Average Payment Delays, B2B, days	2008-2014 from Intrum Justicia, European Payment Index 2014, European Payment Report 2015, European Commission Economic Papers 531. For 2015 -2019 data are from Atradius Payment Practices Barometer. Payment delays average refers to Greek Business customers only. For 2019 data are from 22nd October 2019 Atradius report on Greece. https://group.atradius.com/publications/payment-practice-barometer-greece-2019.html.
Bankruptcies, SMEs	Data on bankruptcies containing data on businesses declared bankrupt in accordance with the relevant court orders which have been issued. Aggregated data are collected on the basis of the court orders issued by the Courts of First Instance.	Hellenic Statistics Authority, Statistics, Population and Social Conditions, Justice, Civil Justice, Bankruptcies https://www.statistics.gr/en/statistics/-/publication/SJU21/- Report: https://www.statistics.gr/el/statistics?p_p_id=documents_WAR_publicationsportlet_INSTANCE_qDQ8fBKKo4lN&p_p_lifecycle=2&p_p_state=normal&p_p_mode=view&p_p_cacheability=cacheLevelPage&p_p_col_id=column-2&p_p_col_count=4&p_p_col_pos=1&_documents_WAR_publicationsportlet_INSTANCE_qDQ8fBKKo4lN_javax.faces.resource=document&_documents_WAR_publicationsportlet_INSTANCE_qDQ8fBKKo4lN_ln=downloadResources&_documents_WAR_publicationsportlet_INSTANCE_qDQ8fBKKo4lN_documentID=427119&_documents_WAR_publicationsportlet_INSTANCE_qDQ8fBKKo4lN_locale=el Most recent data are for 2019, released in November 2020. In November 2020 data for 2021 will be released.

References

Bank of Greece, Governor’s Annual Report 2020.

Bank of Greece, Interim Monetary Policy Report 2020-2021, June 2021.

Bank of Greece, Monetary Policy Report 2020, December 2020.

Bank of Greece, Statistics, Monetary, Financing.

Bank of Greece, Statistics, Non-Monetary Financial Institutions, Aggregated Balance Sheet of Other Financial Institutions, Aggregated Balance Sheet of leasing companies. Note: Loans to non-financial corporations by leasing companies are a subtotal of Deposits and Loans Item of Aggregated Balance Sheet.

Hellenic Ministry for Development and Investments/General Secretariat for Industry, http://www.ggb.gr/en/Finance_SMEs_Loan_Funding, http://www.ggb.gr/en/Finance_SMEs_Development_Loan

Hellenic Development Bank S.A., https://hdb.gr/

Hellenic Bank for Investments S.A., https://taneo.gr/en/

Hellenic Export Credit Insurance Organization, https://www.gov.gr/en/sdg/starting-running-and-closing-business/credit-insurance/general/export-credit-insurance-organization-e-c-i-o

Hellenic Ministry of Finance, 2021 State’s Budget,

Hellenic Ministry of Finance, Public Debt periodical editions, https://www.minfin.gr/web/guest/deltia-demosiou-chreous.

Hellenic Statistical Authority, Bankruptcy Statistics 2010-2019, https://www.statistics.gr/en/statistics/-/publication/SJU21/-

ECB, "SAFE" Survey, 2021, https://www.ecb.europa.eu/stats/ecb_surveys/safe/html/ecb.safe202106~3746205830.en.html.

Equifund, https://equifund.gr/equifund/

European Commission, European Economic Forecast, Spring 2021, May 2021

European Commission, SBA Fact Sheet 2021, https://ec.europa.eu/growth/smes/sme-strategy/performance-review_en, https://ec.europa.eu/docsroom/documents/46077.

European Commission, SME Performance Review 2014-2020, https://ec.europa.eu/growth/smes/sme-strategy/performance-review_en.

European Commission, “SME access to finance conditions 2018 SAFE results – Greece”.

EVCA, European Private Equity Activity Data 2007-2015.

OECD.  (2021), OECD Economic Surveys: Greece 2021, OECD Publishing, Paris.

OECD.  (2020), OECD Economic Surveys: Greece 2020, OECD Publishing, Paris.

Notes

← 1.  According to the European Union standard definition (2003/361/EC), SMEs are firms with less than 250 employees and annual turnover below EUR 50 million and/or balance sheet below EUR 43 million. A small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million. The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million. Within the SME category, a small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million. Within the SME category, a microenterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million.

← 2.  For more information: https://www.minfin.gr/web/guest/-/programma-erakles-eroteseis-kai-apanteseis?inheritRedirect=true

← 3.  For more information: https://hdb.gr/ypoprogramma1/

← 4.  For more information: https://hdb.gr/ypoprogramma2/

← 5.  For more information: https://hdb.gr/ypoprogramma3/

← 6.  For more information: https://hdb.gr/ypoprogramma4/

← 7.  For more information: https://hdb.gr/tameio-anaptyxis-dytikis-makedonias-tadym-covid-19-mikres-poly-mikres-epicheiriseis-kefalaio-kinisis-me-dieti-epidotisi-epitokiou-logo-pandimias-covid-19/

← 8.  For more information: http://eysed.gge.gov.gr/

← 9.  For more information: https://hdb.gr/tameio-egguodosia-covid/

← 10.  For more information: https://hdbi.gr/en/

← 11.  For more information: https://equifund.gr/, http://www.ggb.gr/en/Private_Equity_Capital, Financing SMEs and entrepreneurship: An OECD Scoreboard 2020