Banks have provided 3.6 billion euros in loans to businesses through two programs, Business Financing and the Guarantee Fund, both designed by the Hellenic Development Bank (HDB).

Specifically, they have provided €1.6 billion through Business Financing, out of the €1.8 billion currently available, and €2 billion through the Guarantee Fund, out of the €3.6 billion available.

Business Financing was the first program launched, on April 28, by HDB, to counter the economic effects of the pandemic, with over 100,000 loan applications submitted.

The initial target of €1.3 billion was augmented by funds provided by the Ministry of Development.

The Guarantee Fund was launched on May 5 and is expected to be augmented by €1 billion, which will leverage an additional €3.5 billion in bank loans.

So, total corporate loans through the Guarantee Fund will exceed €7 billion.

The state guarantee can cover up to 80% of the loan, but, on average, covers 30% to 40%, depending on the type and size of enterprise receiving the loan.

At present, there is €500 million in state money available for working capital loans for very small, small and medium-sized enterprises for a total loan amount of €1.5 billion and €500 million more for loans to large enterprises totaling €2 billion.

This article was first published on ekathimerini.com