Financing SMEs and Entrepreneurs 2024

17. Greece

Key facts on SME financing

During 2021 and 2022, economic activity rebounded significantly, covering most of the lost ground from the pandemic shock. Real GDP increased by 8.4% in 2021 after shrinking by around 9% in 2020. This strong growth trend continued in 2022 during which real GDP grew by 5.9%. This is mainly due to private consumption, a significant increase in investments and the recovery of tourism. The uptick in investments in 2022 is related to a significant increase in new business lending, which almost doubled in 2022 after a decade of relatively low volume and a decrease of 26.8% in 2021 vis-à-vis 2020. Still, new lending to SMEs grew proportionally less, by 35%, compared to an impressive 87% increase in new loans for all firms’ sizes. As a result, the share of SMEs in new loans dropped to 20.5%, down from 28.3% in 2021.

However, despite the economic recovery and the increase in new lending, outstanding credit to all businesses in 2022 remains below the level of 2020. 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.

As a result of ECB monetary policy tightening, interest rates for both SMEs and large firms increased in 2022, after a downward trend that lasted for nine years. Interest rates climbed to 4.28% for large firms and to 3.23% for SMEs. The spread between the two decreased marginally by 0.05 but remains above 1% for the third year in a row.

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), which documents increased collateral requirements for more firms and an increase in loan rejection rate for Greek SMEs in 2022.

The percentage of SME non-performing loans was 9.18% in 2022 and has declined for the eighth year in a row since 2016 when it 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. Accordingly, 5.63% of all business loans were non-performing in Greece in 2022.

In 2022, alternative sources of finance were in a small decline in Greece and remained at low volumes in general. Venture capital financing amounted to EUR 325 million, which represented a decrease by 35% compared to 2021. It should be noted though, that 2021 was an exceptional year with EUR 500 million of total volume in funding, and that the equity finance ecosystem in Greece exhibits a general growth trend since it started from a relative low volume. This positive trend is evident if we take in to account the 2020 funding volume, which was merely EUR 150 million, but nevertheless constitutes a quadrupling from the 2016 volume of EUR 38 million. Factoring increased significantly to EUR 2.98 billion compared to EUR 2.37 billion in 2021. Leasing and hire purchase activities increased slightly, reaching EUR 2.7 billion compared to EUR 2.5 billion in 2017.

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”. 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, while at the third cycle the cap rate for micro enterprises loan portfolio was set at 60%. The total Fund resources reached EUR 2 million. 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. As a result, the Fund reached an amortised amount of EUR 6.4 million by the end of 2022, during an operation period of two years.

Table 17.1. Scoreboard for Greece

Indicator	Unit	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
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	25.5	..
Outstanding business loans, total	EUR billion	102	124	124	117	113	101	97	95	89	88	82	76.4	67.3	66.6	57.9	64
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	43.99	..
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	11.85	22.19
New business lending, SMEs	EUR billion	..	12.5	13.0	4.4	5.2	4.1	3.7	2.3	3.2	2.8	3.1	3.3	3.2	6.0	3.4	4.54
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	28.39	20.46
Outstanding short-term loans, SMEs	EUR billion	..	..	..	..	..	..	..	18.1	17.6	18.8	17.0	15.1	13.4	9.5	6.93	..
Outstanding long-term loans, SMEs	EUR billion	..	..	..	..	..	..	..	30.1	29.3	29.6	27.7	25.9	21.7	22.5	18.56	..
Share of short-term SME lending	% of total SME lending	..	..	..	..	..	..	..	37.6	37.6	38.9	38.0	58.4	61.6	42.3	37.37	..
Government loan guarantees, SMEs	EUR billion	..	..	..	..	..	..	0.37	0.31	0.24	0.56	1.08	1.2	1.3	3.9	3.97	4.05
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	8.8	5.63
Non-performing loans, SMEs	% of all SME loans	..	..	..	..	..	..	..	41.2	44.1	43.2	42.5	38.1	36.1	28.5	16.4	9.18
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	3.79	4.28
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	2.7	3.23
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	1.09	1.05
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	13.72	28.5
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	21.93	23.23
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	10.35	14.96
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	150	500	325
Venture and growth capital (growth rate)	%, Year-on-year growth rate	..	72	-49	50	-60	..	..	160	193	3	17	88.8	74.87	1.99	233.3	-35
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	2.52	2.69
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	2.37	2.98
Other indicators
Payment delays, B2B	Number of days	..	25	34	30	35	40	43	41	36	47	47.	33	17	..	50	36
Bankruptcies, SMEs	Number	513	359	355	355	445	415	392	330	189	108	123	114	63	57	53	..
Bankruptcies, SMEs (growth rate)	%, Year-on-year growth rate	..	-30	-1	0	25	-7	-6	-16	-43	-43	14	-7	-23.17	-9.52	-7.02	..

Source: See Table 17.3.

Macroeconomic and financing conditions

The financial crisis and the ensuing sovereign debt crisis had a profound impact on the Greek economy, from which it has not fully recovered yet. 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 2020 and 2021, economic activity declined significantly due to the pandemic and measures to reduce it. Real GDP shrank by 9% in 2020, mainly due to declining service exports and private consumption. According to Eurostat provisional data, in 2022 real GDP increased by 5.9% after a rebound of 8.4% in 2021. The dynamic recovery was a result of higher domestic demand both in consumption and investment activity, the recovery of the tourism sector, and the National Recovery and Resilience Plan. The outlook for 2023 is more uncertain, but growth is expected to remain positive. The main risks to the outlook include the evolution of the war in Ukraine, the pace of global and euro area monetary policy tightening, and the impact of rising energy prices on consumer spending.

SMEs in the national economy

In 2022, 731,829 enterprises, comprising 99.9% of all Greek enterprises, are defined as SMEs, according to estimates from the European Commission. 94.4% of Greek businesses (691,508) are micro-enterprises employing less than 10 employees, 5% (36,813) are small enterprises, 0.5% (3,508) are medium-sized enterprises, and 0.1% (471) are large enterprises. Accordingly, 46.6% of the workforce is employed by micro-enterprises, while 83.5% of the workforce is employed by SMEs. Micro-enterprises and SMEs account for 17.5% and 57% 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 in terms of employment for the Greek economy (see Table 17.2)1.

Table 17.2. Contribution of firms in Greece by size, 2022

% Share	Number of enterprises		Number of employees		Value added
	Greece	EU-28	Greece	EU-28	Greece	EU-28
Micro	94.4 %	93.5 %	46.6 %	29.4 %	17.5 %	18.6 %
Small	5.0 %	5.5 %	24.8 %	19.4 %	20.9 %	16.5 %
Medium	0.5 %	0.8 %	12.1 %	15.5 %	18.6 %	16.6 %
SMEs	99.9 %	99.8 %	83.5 %	64.4 %	57.0 %	51.8 %
Large	0.1 %	0.2 %	16.5 %	35.6 %	43.0 %	48.2 %
Total	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %

Source: European Commission’s SBA Fact Sheet 2022.

SME lending

New business lending to SMEs contracted severely because of the financial crisis. In 2008 and 2009, banks lent circa EUR 13 billion to Greek SMEs. This figure decreased cumulatively by 78% from 2009 to 2016, and practically stagnated until 2019. New business loans to SMEs were EUR 2.8 billion in 2016 and exhibited anaemic growth reaching 3.3 billion in 2019, barely above 2015 levels. New business lending for all enterprises followed a similar trajectory, decreasing by 84% from EUR 36.5 billion in 2008 to EUR 5.7 billion in 2015, but exhibited a slight recovery to 8 EUR billion in 2019, a 38% increase from the 2016 figures. In 2020, new business lending for all firms’ sizes, including SMEs, exhibited a boost and doubled in relation to 2019, reaching EUR 16.2 billion, a trend that was discontinued in 2021. This may be attributed partly to public support in the form of loans to counter the consequences of the pandemic. Public support peaked in 2020 and was gradually phased out in 2021 and 2022.

In 2022, the upward trend in new lending resumed, with new lending almost doubling year-on-year, and a volume almost three times higher than in 2019. The significant acceleration of corporate lending has been facilitated by improved economic conditions, a reduction in Non-Performing Loans, and the 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. Public support schemes that aimed to address the impact to the Covid-19 outbreak where terminated at the end of June 2022 while others while still active until the end of 2022.

It is worth noting that around two-thirds of new business loans in 2022 have been issued to large enterprises. Bank lending to Greek SMEs increased by 35% in 2022, yet the volume of loans to SMEs is one-third of what it was before 2008. Similarly, the share of loans to SMEs continued to drop for eight consecutive years. This development should not be underestimated, given the role of SMEs in the Greek economy.

Despite the significant increase in new lending, the outstanding volume of credit to all businesses remains at a relatively low level, practically stagnant for a third year in a row. The volume of outstanding bank loans is still half of what it was before the 2008 crisis. It is worth noting that the recent reduction of the stock of loans compared to pre-2019 levels 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.

Credit conditions

In tandem with ECB monetary policy tightening, interest rates for both SMEs and large firms increased in 2022, after a downward trend that lasted for nine years. Interest rates climbed to 4.28% for SMEs and to 3.23% for large firms. The cost of bank financing is high in Greece compared to other Eurozone countries.

In 2022, the spread for SME loans decreased marginally by 0.05 but remained above 1% for the third year in a row. 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 started increasing again in 2018.

Credit conditions tightened, and access to finance continues to be a central problem for Greek SMEs. According to the most recent ECB survey (SAFE, 2023), only 23.2% of Greek SMEs applied for a bank loan. The proportion of Greek SMEs that reported higher collateral requirements when they applied for a bank loan continued to increase in 2022, and the net difference between SMEs that were asked for higher collateral minus those that were asked for lower collateral reached 28.5%. The rejection rate increased to almost 15%. This is the highest loan rejection rate since 2018.

Alternative sources of SME financing

In 2008, venture capital and growth capital investments totalled a EUR 32.7 million, and continued to decline significantly until 2012, when a small amount of venture and growth investments took place. Investments slightly recovered in 2013, reaching EUR 4.8 million. In 2015, VC investments reached EUR 12.6 million, and since then rose rapidly to EUR 44.5 million in 2017, a 20.6% increase, e from 2008. The rate of Venture capital growth doubled every year from 2017 to 2021, surpassing EUR 500 million, which is a tenfold increase from 2008. In 2022, Venture and growth capital investments in Greece declined substantially, and are estimated to be around EUR 325 million, still twice as large in comparison to 2020. The decline in VC investments during 2022 vis-à-vis 2021 may be attributed largely to the EquiFund investment cycle. The growth experienced prior to 2022 is, nonetheless, expected to continue in 2023. In general, the growth trend of Venture Capital in Greece can be largely attributed to the positive impact of the European Investment Fund, the creation and operation of Equifund and the leverage it created, the Hellenic Bank for Development initiatives, and the gradual maturity of the ecosystem in general.

The total outstanding amount of financing from leasing companies reached its peak in 2008 amounting to EUR 7.8 billion, which implied that factoring 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, then started decreasing again in 2017 and continued to decrease until 2021. The first significant increase after seven years was in 2022, reaching EUR 2.7 billion, but remains a small fraction of the levels registered prior to 2016.

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 exhibit a slow albeit steady growth reaching almost EUR 3 billion in 2022. This source of financing has grown considerably and consistently during the past fifteen years and has almost doubled since its pre-crisis level.

Other indicators

Bankruptcies for all businesses declined by 30.2% in 2008 compared to 2007, remaining 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 continued to fall in 2015 and 2016 (by more than 40%), but they increased by 13.9% in 2017. Since 2018, bankruptcies continued to drop gradually, reaching a total of 53 number of bankruptcies in 2021 (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 was 28.5% in 2020 and has declined for the 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, to be accessible until April 2022, 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. As a result, in 2022, only 5.63% of all business loans were non-performing, while the SMEs’ share of NPLs continued to drop and reached 9.28%.

In 2022, B2B terms of payment days decreased by 2 weeks, reaching 36 days compared to 50 days in 2021. This is an indication of tightening liquidity conditions.

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 S.A.) 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 ETEAN 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, water 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, foster innovation, facilitate investments in infrastructure, encourage equity investments and other alternative financing sources and 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 deployed new financial instruments programmes 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 programmes estimated to have significant impact on sustainable growth, regional development, job creation and investments, while at the same time being financially autonomous and sustainable. HDB has broadened the scope of its services, to include the origination and management of innovative special purpose funds, co-financing loans and/or guarantees at attractive terms.

The Greek government has established several funds to improve SMEs’ access to finance, combining the national budget, the private sector, and the ERDF’s funds.

Entrepreneurship Fund II

The Entrepreneurship Fund II provides low-cost loans to SMEs to achieve one of four aims: establish new innovative export-oriented enterprises; modernize and bring innovation to existing firms; enhance the extroversion of Greek SMEs and enhance the active participation of firms in the social economy. The Entrepreneurship Fund II began its operations during the 2^nd semester of 2018 when the first programme, “Entrepreneurial Financing”, was launched, 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 were 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. The Entrepreneurship Fund II has implemented so far four (4) sub-programs whose financing terms are as follows:

• Sub-programme 1: Investments for development reasons (active until 31.12.2023).

• Co-financing scheme: 40% public funds interest-free – 60% Financial Intermediaries.

• Loan type: Investment Loan.

• Loan Amount: EUR 25 000 - EUR 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 the loan’s amount.

• Loan Duration: 5-10 years (including any grace period).

• Grace period: 6 to 36 months (interest accrued).

• Instalments: Agreed between bank and client.

• Fees charged: up to 0.5%, but they shall not exceed EUR 4.000/contract.

• Sub-programme 2: Provision of working capital.

• Co-financing scheme: 40% public funds interest-free – 60% Financial Intermediaries.

• Loan type: Working Capital.

• Loan Amount: EUR 10.000 – EUR 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 the loan’s amount.

• Loan Duration: 24 up to 60 months.

• Grace period: 6 to 24 months.

• Instalments: Agreed between bank and client.

• Fees charged: up to 0.5% of the loan amount, but they shall not exceed EUR4.000/contract.

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

• Co-financing scheme: 40% public funds interest free – 60% Financial Intermediaries.

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

• Loan Amount: EUR 10 000 – EUR 500 000 and up to 50% of their turnover or up to 50% of current year’s orders.

• Interest Rate: Average interest rate, (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. The Interest rate shall not exceed 8% during the subsidy period (2 years).

• Duration: 24 to 60 months.

• Possibility for a grace period of up to 6 months.

• Instalments: Agreed between bank and client.

• Fees charged: up to 0.5% of the loan amount, but they shall not exceed EUR4 000/contract.

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

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

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

• Loan Amount: EUR 10 000 – EUR 500 000 and up to 50% of their turnover or up to 50% of current year’s orders.

• Interest Rate: Average interest rate, (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.

• Instalments: Agreed between bank and client.

• Fees charged: up to 0.5% of the loan amount, but they shall not exceed EUR4.000/contract.

The Entrepreneurship Fund II has been the main source of public support for this period as demonstrated by its results below:

• Outcome of Sub-programme 1 (30-04-2023): Total number of approved loans: 1907. Total volume of loans: EUR 343 million2.

• Outcome of Sub-programme 2 (31-12-2022): Total number of approved loans: 1 352. Total volume of loans: EUR 254.3 million3. The Fund budget has been allocated, and the Programme is no longer accepting proposals.

• Outcome of Sub-programme 3 (31-12-2022): Total number of approved loans: 10 184. Total volume of loans: EUR 1.3 billion4. The Fund budget has been allocated, and the Programme is no longer accepting proposals.

• Outcome of Sub-programme 4 (31-12-2022): Total number of approved loans: 7 115. Total volume of loans: EUR 429.25 million5. The Fund budget has been allocated and the Programme is no longer accepting proposals.

Entrepreneurship Fund II – Aggregated results (30-04-2023): Total number of approved loans: 20.558. Total volume of loans: EUR 2.327 million.

Table 17.3. Entrepreneurship Fund II, Results by Sub-programme.

Source: Author’s calculations.

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

The programme concerns the subsidy of Loans for existing SMEs affected by the COVID-19 Virus Pandemic Measures. The public expenditure of this Call amounts to EUR 750 million and was funded by NSRF 2014-2020. 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 EUR 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 programme was launched in April 2020 by the Executive Agency for Management and Implementation of Industry, Commerce and Consumer Protection, which oversees transferring of all resources required. The Action budget had been allocated by August 2021, but Programmed funds were disbursed to beneficiaries until mid-2022.

Two more Programmes were designed in 2022 whose implementation begun in 2023. These are the Business Growth Fund (BGF) with a total budget of EUR 840 million and the Agricultural Entrepreneurship Small Loans Fund (TMDAE) with a total budget of EUR 21.5 million6.

The BGF financing scheme and the financing terms for its 3 sub-funds are:

• Co-Financing scheme: 40% BGF interest-free – 60% Financial Intermediaries

  1. Liquidity Co-Financing Loans (Sub-fund 1)

• Loan Type: Working Capital

• Loan amount: EUR 10 000 – EUR 1.5 million

• Loan duration: 24 months – 60 months (including any grace period)

• Grace Period: up to 12 months

• Interest Subsidy: 3% to Financial Intermediaries’ participation for 2 years (under circumstances)

  2. Digitalization Co-Financing Loans (Sub-fund 2)

• Loan Type: Investment Loan

• Loan amount: EUR 25 000 – EUR 1 million

• Loan duration: 24 months – 120 months (including any grace period)

• Grace Period: up to 24 months

• Interest Subsidy: 3% to Financial Intermediaries’ participation for 2 years

  3. Green Co-Financing Loans (Sub-fund 3)

• Loan Type: Investment Loan

• Loan amount: EUR 80 000 – EUR 8 million

• Loan duration: 24 months – 120 months (including any grace period)

• Grace period: up to 24 months

• Interest Subsidy: 3% to Financial Intermediaries’ participation for 2 years

The TMDAE financing scheme and terms are:

• Programme terms: Co-financing scheme: 50% TMDAE– 50% Financial Intermediaries

• Loan Type: Investment Loan / Working Capital Loan

• Loan amount: EUR 3 000 – EUR 25 000

• Loan duration: 24 months – 60 months (including any grace period)

• Grace Period: up to 24 months

• Interest Subsidy: total interest subsidy for 2 years.

West Macedonia Development Fund (TADYM)

The West Macedonian 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 9 million (half from the national public investment Programme, half from the Region of Western Macedonia), 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-financing scheme of 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 100% for the first two years of each loan’s duration and will be fixed. During such a 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 years, including a possible grace period if an enterprise requests it. The interest rate is subsidized for two years. TADYM started accepting applications in June of 2021, and its financing terms are the following:

• Co-financing scheme: 40% public funds (TADYM) interest-free – 60% Financial Intermediaries.

• Purpose of funding: Working Capital.

• Loan Amount: EUR 5 000 – EUR 50 000.

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

• Interest Subsidy: total interest subsidy for 2 years

• Duration: 24 to 60 months (including any grace period).

• Grace period: up to 24 months.

• Instalments: Agreed between bank and client.

• Fees charged: up to 0.5% of the loan amount, but they shall not exceed EUR4.000/contract.

  Outcome of TADYM (31-07-2022): Number of disbursed loans: 63. Total volume of disbursed loans: EUR 18.85 million8. The Fund budget has been allocated, and the Programme is no longer accepting proposals.

Loan guarantees

COVID-19 Guarantee Fund

During the economic crisis caused by COVID-19 pandemic 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. in cooperation with the Ministry for Development and Investments established the “COVID-19 Guarantee Fund”. The programme aimed at guaranteeing working capital loans issued by the banks in favour of SMEs, and large firms. 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: were not considered as undertakings in difficulty as of 31.12.2019 (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 and have fulfilled their long-term bank obligations (have a debt of <90 days) by the date of application or by 31.12.2019.

With the activation of the second cycle, which was launched in -November of 2020 and was terminated on the 30th of June 2022, 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 EUR 780 million, so the total available funds of the two cycles of the Business Guarantee Fund COVID-19 now amounts to EUR1.78 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 first 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. At the third cycle, which was launched in May of 2021 and was terminated on the 30th of June 2022, the cap rate for micro enterprises loan portfolio was set at 60% and the total Fund resources reached EUR 2 million.

Outcome of COVID-19 Guarantee Fund (30-04-2023): 19.721 approved loans (96,7% to SMEs) amounting to EUR 6.2 billion loans volume (59% to SMEs)9.

Guarantee Fund HDB – Engineers and Public Works Contractors Fund (TMEDE)

The Engineers and Public Works Contractors Fund (TMEDE) was launched in October 2021 with a budget of EUR 28 million. The Fund aims to enhance the liquidity of the SMEs that wish to undertake or have already undertaken the execution of a construction project and/or a project study whose scope is the interest of the public, regardless of the current stage of the project, through the provision of guarantees to the Banks which cooperate with HDB and provide working capital loans. Its financing terms are the following:

Co-Financing scheme:

• Domestic Program of Public Investment (70%) / Public Works Contractors Fund (TMEDE) (30%)

  Financing terms:

• Purpose of financing: working capital

• maximum financing amount: The amount of the initial capital of the loan does not exceed EUR 200 000 and one of the following rules, whichever is less:

1. Double the annual wage cost of 2019 or

2. 25% of the SMEs’ annual 2019 turnover or

3. 100% of the documented liquidity needs starting the date of the loan granting and up to the following 18 months, regarding new-established enterprises.

• Interest rate: Lower to market rate due to guarantee depending on the loan guarantee and the cooperative banks’ credit policy.

• Fees charged: The guarantee commission may be subsidized (subject to the limitations of the De Minimis Regulation).

• Maturity/term/amortization: From 1 up to 5 years (including any grace period).

• Collateral/security: Up to 40% of the loan value.

  Programme terms:

• Guarantee Rate: 80%

• Cap Rate: 50%

Outcome of TMEDE (31-05-2023): Number of disbursed loans: 276. Total volume of disbursed loans: EUR 31.2 million10. Uptake by beneficiaries is at 45.55% of the Fund budget. The Programme will be active until 31/12/2023.

HDB - Innovation Guarantee Fund (IGF)

The Innovation Guarantee Fund was launched in May 2022 with a budget of EUR 64.5 million. Greek SMEs, Startups and Innovative companies will benefit from an innovative financial program aiming in strengthening the competitiveness and extroversion of Greek entrepreneurship by supporting Business plan implementations based on Research and Development for innovative ideas, products, and practices. That is achieved through the provision of guarantees to the local Financial Institutions who act as intermediaries for issuing hybrid loans combining guarantee-grant schemes. Its financing terms are the following:

Financing scheme:

• Domestic Program of Public Investment (100%)

Financing terms:

• Purpose of financing: An innovative investment business plan for fixed assets as the plan related working capital.

• maximum financing amount: The amount of the initial capital of the loan does not exceed EUR 400 000 with a minimum of EUR 25 000:

• Interest rate: Lower to market interest rate due to guarantee depending on the loan guarantee and the financial intermediaries’ credit policy.

• Fees charged: No guarantee fees charged.

• Maturity/term/amortization: From 1 up to 10 years (including up to 3Y grace period).

• Collateral/security: Up to 20% of the loan value.

  Programme terms:

• a total of EUR140.7 million will be fueled to the market through the Financial Intermediaries

• Guarantee Rate: 80%

• Cap rate: 30%

• Capital grant rebate, which automatically repays the loan outstanding amount upon KPI completion triggering events: 15% grant capital rebate for meeting innovation KPIs followed by + 5% grant capital rebate for meeting ESG KPIs, totaling up to a 20% reduction of the loan outstanding amount.

Outcome of IGF (31-05-2023): Number of disbursed loans: 59. Total volume of disbursed loans: EUR 14.46 million11. Uptake by beneficiaries is at 5.09% of the Fund budget. The Programme will be active until 31/12/2025.

HDB - Audiovisual Productions Portfolio Guarantee Fund (APPGF)

The Fund Audiovisual Productions Portfolio Guarantee Fund was launched in January 2022 with a budget of EUR 25 million. The Fund aims to cover liquidity needs and needs arising from the medium-term investment planning of the AV enterprises through the provision of guarantees to the banks which cooperate with HDB, to provide working capital and investment loans with better terms. Its financing terms are the following:

Financing scheme:

• Domestic Program of Public Investment (100%)

Financing terms:

• Purpose of financing: working capital/investment

• Maximum financing amount: From EUR 25 000 up to EUR 900 000, per enterprise

• Interest rate: lower due to guarantee depending on the loan guarantee and the cooperative banks’ credit policy.

• Fees charged: Guarantee commission amounts to: (0.4%) x (loan amount) x (guarantee rate) x (years) and is borne by the enterprise.

• Maturity/term/amortization: From 1 up to 5 years for Working Capital Loans (including any grace period). From 1 up to 10 years for Investment Loans, including any grace period.

• Collateral/security: Up to 50% of loan value

  Programme terms:

• Guarantee Rate: 80%

• Cap Rate: 50%

Outcome of APPGF (31-05-2023): Number of disbursed loans: 32. Total volume of disbursed loans: EUR 7.12 million12. Uptake by beneficiaries is at 8.75% of the Fund budget. The Programme will be active until 31/12/2025.

ESIF - ERDF Investment Guarantee Fund (IGF)

The Investment Guarantee Fund was introduced in January 2021 aiming to provide guaranteed investment loans to small and medium-sized enterprises. The Fund is managed by the European Investment Fund (EIF), which will act as a guarantor of investment-purpose loans, up to 80 %. The Fund is co-financed by national and European funds amounting to EUR 100 million through the Operational Programme “Competitiveness, Entrepreneurship and Innovation” of the PA (Partnership Agreement for the Development Framework) 2014-2020. The programme is open for applications and loans can be disbursed until 31-12-202313. Its terms are:

Financing terms:

• Purpose of financing: investment/working capital related to investment purposes.

• Maximum loan amount: EUR10 000 up to EUR1.875 million.

• Interest rate: Lower due to guarantee depending on the loan guarantee and the financial intermediaries’ credit policy.

• Fees charged: No guarantee fees charged.

• Maturity/term/amortization: From 1 up to 10 years.

• Collateral/security: Up to 50% of loan value

  Programme terms:

• Guarantee Rate: 80%

• Cap Rate: 25% of each financial intermediary portfolio.

Support for venture capital financing

EquiFund

EquiFund was established as a Fund of Funds by the Deputy Minister of Economy and Development in December 2016 in cooperation with the European Investment Fund (EIF) and has been evaluated as a major success. 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 and the 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 funds chosen through an open competitive procedure. Specifically, EquiFund invests in the following three key areas:

• Research and innovation (technology transfer – innovation).

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

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

Special emphasis is placed upon 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 SMEs14. Targeted sectors include all sectors with a special focus on food and beverage, agri-business, tourism and hospitality, environment, or energy efficiency. At the end of 2019, nine selected funds by EIF invested a total amount of 216 million euros to 74 SMEs, mainly start-ups in the ICT sector active 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.

Until March 2023, in a period of four years, the EquiFund had already committed EUR260 million in 9 Funds, mobilising more than EUR670 million from more than 150 co-investment partners, funded 130 Greek start-ups and scale-ups, and help achieve 9 successful exits. As a result, more than 4 000 jobs have been supported at the time of the investment.

For the 2021-2027 period, EquiFund will continue its operation with a funding of EUR250 million from the Operational Programme “Competitiveness”. It is worth noting that Uni.Fund, one of the nine Funds, which focuses on innovation and supports university spinouts and start-ups, has already announced its EUR50 million first close of its second fund and aims to reach its target of EUR60 million by the end of 2023.

Hellenic Development Bank S.A. - EquiFund (Growth State Window)

The Hellenic Development Bank (HDB) since May 2018 participates in all three Funds of Equifund’s Growth Stage Window. The Programme and the Financing terms are defined by the European Investment Fund (EIF), as HDB participates in the fund-of-fund scheme established and governed by EIF in partnership with the Greek government. HDB shall aim to comply with the EIF’s Financing terms. Regarding equity financing, the HDB is not in the position to publicly disclose the terms of their participation. HDB has committed EUR64.76 million and by 31/12/2022 the drawdown amount has reached EUR34.19 million. The investment period of existing funds by the end of 2023. After 2023 complementary investment may take place to enterprises that have received funding before 2023.

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

HDBI S.A.15 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 Greek SMEs with high-growth potential. Since its establishment, HDBI S.A. has launched the following calls for expression of interest by investment schemes (venture capital – private equity funds) from those with relative expertise:

“Restructuring”, “Made in Greece”, “4IR”, and “Debt” Funds:

In the framework of the Development Strategy of the Ministry of Economy and Development, the Hellenic Development Bank of Investments implemented in February 2019 a EUR700 million (public contribution) investment programme in four distinct Funds, aiming to mobilize more than EUR 1 billion for investments in SMEs. The programme targeted interested investors and fund managers who intend to set up Venture Capital Mutual Funds or Venture Capital Companies or similar venture capital entities operating under the laws of a European Union member state. The Debt Fund Call expired on 16/07/2022. The end date for the rest of the Funds will be extended until the available capital is exhausted. The Financing terms for this call include investments through convertible bonds and/or debentures with a right (Equity – Quasi/Equity participation). The Funds are the following:

The 4IR Fund has EUR50 million under Management and provides financing to support non-listed Greek SME’s engaging in 4IR (Industry 4) activities through co-investment in Venture Capital Funds.

The Anodos Restructuring Fund has EUR150 million under Management and provides financing to support SME and Mid-caps engaged in manufacturing and processing operations which need restructuring / reorganisation, through Venture Capital Funds.

The Made in Greece Fund has EUR50 million under Management and provides financing to support SME engaged in the production and promotion of “Made in Greece” branded products, through Venture Capital Funds.

The Debt Fund has EUR450 million under Management and provides financing to support SMEs through Venture Capital Funds.

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 through equity participation and/or convertible bonds and/or rights bearing bonds, in new or existing non-listed SMEs or Special Purpose-Project Companies, which are active in Greece and are 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 EUR 400 million. The Action was launched in August 2020, and the end date will be extended until the available funds are exhausted. The Financing terms for this call include investments through convertible bonds and/or debentures with a right (Equity – Quasi/Equity participation).

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 on a pari passu basis in the form of equity or quasi-equity schemes, for the support of non-listed Greek SMEs. Public participation is EUR 100 million. The Fund was launched in August 2020, and the end date will be extended until the available funds are exhausted.

Accelerate Technology Transfer (TT) Fund

This Fund 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. Public participation is EUR 60 million. The Fund was launched in March 2021, and the end date will be extended until the available capital is exhausted. The Financing terms for this call include investments through convertible bonds and/or debentures with a right (Equity – Quasi/Equity participation).

Innovate Now Fund

This Fund combines public and private capital, but its public source of capital is within the framework of the National Recovery and Resilience Plan “Greece2.0” with funding from the European Union in the context of the NextGenerationEU programme. It aims to provide financing to non-listed Greek SMEs that have innovative features and are active in rapidly growing sectors of the economy, such as information technology, biotechnology, microelectronics and contribute to the production process through the development of Cyber-physical systems, IoT, On-demand availability of computer system resources, cognitive computing, robotic applications, artificial intelligence, nanotechnology, genomics, cyberspace, big data analysis etc through Venture Capital Funds. Public participation is EUR 100 million.

The Fund was launched in April 2022, and the end date will be extended until the available capital is exhausted but not after 31/12/2024. The Financing terms for this call include investments through Equity / Quasi Equity participation.

Q-equity Fund

This Fund combines public and private capital, but its public source of funds is within the framework of the National Recovery and Resilience Plan “Greece2.0” with funding from the European Union in the context of the NextGenerationEU programme. It aims to provide financing to non-listed Greek SMEs that maintain an establishment in Greece at the time of the investment through Venture Capital Funds. Public participation is EUR 400 million.

The Q-equity Fund was launched in July 2022, and the end date will be extended until the available capital is exhausted but not after 31/12/2024. The Financing terms for this call include investments through Equity / Quasi Equity participation.

Figure 17.1. Trends in SME and entrepreneurship finance in Greece

Source: See Table 17.3

Statlink

Table 17.4. Sources and definitions of 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
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
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	a) Outstanding amount of "Stock of debt guaranteed by government" at the end of each year (in million euros) to the European Investment Bank for SMEs loans, as also reported in the 2022 Annual Budget of the Hellenic Republic: 1,477.80 mil €, plus B) Guarantees in the context of COVID-19 pandemic, as reported in the Public Debt's periodical editions (SURE Programme and Pan European Guarantees' Fund): 695.60 mil plus c) Hellenic Development Bank Guarantees (ex ETEAN S.A. &related Funds) as reported in the Public Debt's periodical editions: 1,879.00 (1,477.80 + 695.60 + 1879) = 4052.4	Hellenic Republic Public Debt Bulletin, No 109, March 2023, p. 6 Quarterly Bulletin of Public Debt Management Agency: https://www.pdma.gr/en/quarterly-bulletin/5445-no109 For comparison see end of October data, only loans guaranteed by the Government: Ministry of Finance, November 2022, State Budget Introductory Report, p.198, https://www.minfin.gr/documents/20182/19144001/21-11-2022+++%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+%CE%A0%CE%A1%CE%9F%CE%AB%CE%A0%CE%9F%CE%9B%CE%9F%CE%93%CE%99%CE%A3%CE%9C%CE%9F%CE%A5+2023.pdf/b6044e3b-8f3f-4929-9cfe-be99491cae03
Non-performing loans, total	Loans past-due 90 days.	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.	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,
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
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 URL: 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
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 URL: 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
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 2014-2019 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). For the 2020, 2021 and 2022, data are from the Annual "Startups in Greece, Venture Financing Report" by Found.ation, eit digital and HDBI, p 67: https://thefoundation.gr/innovation-platform/our-publications/startups-in-greece/
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 Aggregated 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 Aggregated 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	Indicates average payment term (average days) set for B2B customers	2008-2014 from Intrum Justicia, European Payment Index 2014, European Payment Report 2015, European Commission Economic Papers 531. For 2015 -2022 data are from Atradius Payment Practices Barometer. Payment delays average refers to Greek Business customers only. For 2021 data are mentioned on the webpage summary: https://atradius.gr/reports/payment-practices-barometer-b2b-payment-practices-trends-greece-2023.html For 2022 data are from the Statistical Appendix, Survey Results for Western Europe 2023. p5. https://group.atradius.com/publications/payment-practices-barometer/b2b-payment-practices-trends-greece-2023.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 based on the court orders issued by the Courts of First Instance. All firm sizes, not just SMEs.	Hellenic Statistics Authority, Statistics, Population and Social Conditions, Justice, Civil Justice, Bankruptcies https://www.statistics.gr/en/statistics/-/publication/SJU21/- Most recent data are for 2021, released in November 2022. Data for 2021 will be released in November 2023.

References

Atradius, B2B payment practices trend, Greece 2023. https://group.atradius.com/publications/payment-practices-barometer/b2b-payment-practices-trends-greece-2023.html

Bank of Greece, Governor’s Annual Report, Year: 2022. https://www.bankofgreece.gr/en/publications-and-research/publications/governors-annual-report

Bank of Greece, Monetary Policy Report 2021-2022, June 2022. https://www.bankofgreece.gr/en/publications-and-research/publications/monetary-policy-report

Bank of Greece, Statistics, Monetary and Banking Statistics, Credit Aggregates. http://www.bankofgreece.gr/Pages/en/Statistics/monetary/financing.aspx

ECB, Survey on the Access to Finance of Enterprises (SAFE) in the Euro Area, June 2023. https://www.ecb.europa.eu/stats/ecb_surveys/safe/html/ecb.safe202306~58c0da48d6.en.html

European Commission, SME Performance Review 2023. https://single-market-economy.ec.europa.eu/smes/sme-strategy/sme-performance-review_en

Equifund. https://equifund.gr/

Found.ation and EIT Digital, Startups in Greece 2022-2023 Report. https://thefoundation.gr/innovation-platform/our-publications/startups-in-greece/

Hellenic Statistical Authority, Bankruptcy Statistics 2010-2021. https://www.statistics.gr/en/statistics/-/publication/SJU21/-

Hellenic Republic Public Debt Bulletin, No 109, March 2023, Quarterly Bulletin of Public Debt Management Agency. https://www.pdma.gr/en/quarterly-bulletin/5445-no109

Ministry of Finance, November 2022, State Budget 2023 Introductory Report. https://www.minfin.gr/documents/20182/19144001/21-11-2022+++%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+%CE%A0%CE%A1%CE%9F%CE%AB%CE%A0%CE%9F%CE%9B%CE%9F%CE%93%CE%99%CE%A3%CE%9C%CE%9F%CE%A5+2023.pdf/b6044e3b-8f3f-4929-9cfe-be99491cae03

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. Within the SMEs 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. 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 updated data: https://hdb.gr/ypoprogramma1/

← 3.  For updated data: https://hdb.gr/ypoprogramma2/

← 4.  For updated data: https://hdb.gr/ypoprogramma3/

← 5.  For updated data: https://hdb.gr/ypoprogramma4/

← 6.  For more information: https://hdb.gr/tag/daneia/

← 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 updated data: https://hdb.gr/trapeza-arithmous/tameio-anaptixis-dytikis-makedonias-statistika/

← 9.  For updated data: https://hdb.gr/tameio-egguodosia-covid/

← 10.  For updated data: https://hdb.gr/statistika-tameio-engyodosias-hdb-tmede/

← 11.  For updated data: https://hdb.gr/statistika-tameio-engyodosias-kainotomias/

← 12.  For updated data: https://hdb.gr/statistika-tameio-engyodosias-daneion-epicheiriseon-paragogis-optikoakoustikon-ergon/

← 13.  For more information: http://www.antagonistikotita.gr/epanek/prokirixeis.asp?id=75&cs

← 14.  For more information: http://www.antagonistikotita.gr/epanek/prokirixeis.asp?id=59&cs, Financing SMEs and entrepreneurship: An OECD Scoreboard 2022, https://www.fi-compass.eu/showcase-2023/equifund-financing-growth-and-innovation-greece

← 15.  For more information: https://hdbi.gr/en/