Papathanasis: Agreement on the establishment of business support funds in Fair Development Transition Areas

The financing agreement for the establishment of a Fair Development Transition Portfolio was signed by the Deputy Minister of National Economy and Finance, Nikos Papathanasis, aiming to support and develop each size in DAM areas. The establishment of a Fair Development Transition Fund by the Greek Development Bank, with a total loan budget of EUR 187 million, is funded through resources from the NSRF 2021-2027 Fair Development Transition Programme, with the possibility of financing businesses from other European, national and other sources. The objective of the Fair Development Transition Portfolio Fund is to create, at first instance, two Financial Instruments – as ‘Special Funds’ – for the support and development of enterprises of each size, in the Fair Development Transition Areas, to facilitate their access to finance, encourage investment and entrepreneurship, and to generally develop these areas in the context of changing the productive model for the smooth and fair transition to the ‘metalipnic’ era. The two Financial Instruments to be created through the IMM Portfolio Fund are: The Development Loan Fund , which will provide loans for Investment Costs and Movement Funds, with a 3 year interest subsidy of 3% for the implementation of investments in the DSM areas. The Lending Fund for Investor Loans for Fair Development Transition , which will provide loans for Investment Costs, with a 2-year interest subsidy of 3% for the implementation of investments in DAM areas. The benefits of the Financial Instruments of the IMM Portfolio Fund will be combined with other grant programmes implemented in separate operations of the Fair Development Transition Programme, always respecting the rules of State Aid applicable on a case-by-case basis. The Deputy Minister of National Economy and Finance, Nikos Papathanasis, stressed: “We continue to implement our government programme, aiming at double convergence, both with the rest of Europe and mainly between the regions of the country. The ultimate purpose of this intervention, launched in parallel with the implementation of the EUR 1.6 billion wider DAM Programme, is to support investment projects and to develop the economy of regions affected by the energy transition, to maintain existing and to create new and better paid jobs, especially for young people and young people who want to stay at home.”