Cash boost for small busi­nesses

Kathimerini English - - Business & Finance -

The gov­ern­ment and lo­cal banks signed a fund­ing agree­ment with the Euro­pean In­vest­ment Bank for guar­an­tees of 1 bil­lion eu­ros, Re­gional De­vel­op­ment Min­is­ter Michalis Chryso­choidis an­nounced yes­ter­day.

The deal pro­vides for the state to of­fer guar­an­tees of 1 bil­lion eu­ros to the EIB for lo­cal len­ders to is­sue loans to very small, small and medium-sized en­ter­prises, medium-cap­i­tal­iza­tion com­pa­nies and lo­cal authorities this year.

The banks, the min­is­ter noted, are obliged to pro­vide the whole of the amount from the EIB to en­ter­prises with­out any reap­ing any prof­its, while there is a pro­vi­sion for an­other bil­lion eu­ros for 2012.

Chryso­choidis also an­nounced two new fund­ing tools to boost young peo­ple’s en­trepreneur­ship, adding up to 240 mil­lion eu­ros.

Fur­ther­more, he sug­gested that in the next few days the gov­ern­ment will set up a min­is­te­rial com­mit­tee from 10 min­istries aimed at draft­ing a bill that will lift the 30 most im­por­tant ob­sta­cles in en­trepreneur­ship. It must be ready within two months.

The min­is­ter stated that the busi­ness world is right in protest­ing about banks, but stressed that banks’ op­er­a­tions have been se­verely ham­pered by mea­sures in­tro­duced as a re­sult of the coun­try’s fis­cal prob­lems.

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