P.R.: Launch of the Funding Plan of Refundable Deposit
On Thursday, April 2, 2020, the Joint Ministerial Decision (Government Gazette 1135 / B / 2-4-2020) of the Ministers of Finance and Development and Investment on the "Electronic Platform for the Implementation of the temporary measure of aid in the form of Refundable deposits to enterprises financially affected by the emergence and spread of coronavirus and the process of submitting an expression of interest" was signed. This JMD entered into force the digital platform "myBusinessSupport" of the Independent Public Revenue Authority (AADE) to launch the f funding plan of refundable deposit.
This is the Ministry of Finance's funding plan to further support small and medium-sized businesses operating across the economy, regardless of industry, affected by the impact of the pandemic.
The initial total amount of the funding plan is 1 billion euros and its operation consists of direct financial support to companies, which is, in whole or in part, refundable to the State depending on the course of business.
Specifically, the features and parameters of the funding plan of refundable deposit are configured as follows:
• It is mainly targeted at small and medium-sized enterprises, ie enterprises with a staff of 1 to 500 employees, and concerns all sectors of the Greek economy.
• Responds to the issues of accessibility to finance and credit profiles that many small and medium-sized businesses have, which are exacerbated under the current circumstances.
• It is granted to businesses directly by the State under the tax administration system (TAXIS).
• It is characterized as refundable because, either wholly or in part (depending on the viability of the business), it will be returned to the State within the next few years at an extremely low interest rate.
• The total duration of the plan is five years. The first year is a grace period, with no obligation to pay. The repayment takes place over the next four years in equal monthly installments.
• The eligibility of companies is based on the recording of their current situation compared to the previous one. The recording will be obtained through a - standardized - monitoring and evaluation mechanism of the Ministry of Finance (General Accounting Office and Independent Authorith of Public Revenue), based on tax data and other relevant economic and business indicators.
• The amount of aid to each company will be determined - standardized - by the change in the current situation of the business, taking into account other characteristics.
• The aid through the plan of the refundable deposit will not be able, as a maximum, to exceed the amount of 500,000 euros per business and will be uncontrollable, tax-free and non-offset.
• The plan of the refundable deposit has as its main goal the support of companies so that they can maintain their jobs. Therefore, the companies that use the plan are bound by the non-redundancy clause, which, as we had announced, is valid from March 30, 2020.
• This aid is to be provided in accordance with the European Union's framework (regular and extraordinary) for state aid.
• The plan of the refundable deposit will be funded both by Community resources, under the special financial tool for tackling the coronavirus crisis, and by State Budget resources.
From today, Friday, April 3, 2020 to April 10, 2020, companies interested in using the plan of the refundable deposit of the Ministry of Finance can express interest in the special electronic platform "myBusinessSupport" (www.aade.gr/mybusinesssupport).
The next Joint Ministerial Decision, following the basic conditions and data for the expression of interest on the part of the companies, will determine, in detail, the parameters and characteristics that will determine the immediate implementation of the funding plan of the refundable deposit.