Issue No. 13381

 

IN THE context of its policy to enhance market liquidity and support small businesses in paying their current liabilities, the government announced a new programme of the state-run Fund for Loan Guarantees to Small and Very Small Enterprises, or TEMPME. 

 

Under the programme, up to 80 percent of bank loans will be guaranteed by the Greek state for amounts ranging from 5,000 to 300,000 euros and are intended for the payment of debts to social security funds, tax authorities as well as suppliers.

 

About 100,000 medium and small-sized enterprises are to be helped through the new TEMPME initiative, which totals 2 billion euros. 

 

Beneficiaries of the programme presented by the minister of economy, competitiveness and shipping, Louka Katseli (photo), are professionals as well as medium and small-sized enterprises operating in all sectors of the economy, new or old, regardless of company type (sole proprietorships, general partnerships, limited partnerships, limited liability companies and limited companies). Eligible firms should be staffed with fewer than 50 employees, which presented and have reported a turnover of up to 10 million euros in the last financial year. Exempted are those enterprises that have already received loans for working capital from the previous phase of the TEMPME programme.

 

Moreover, exempted are those enterprises that are classified as being “in difficulties” in accordance with European regulations. 

 

The first part of the programme (with a budget of 1 billion euros) will expire at the end of 2010 and applies to enterprises with debts to social security funds or to tax authorities which had not been paid up to February 28. The loans earmarked range between 5,000 and 100,000 euros.

For loans higher than 40,000 euros, the bank may request additional collateral from the enterprises, given that the TEMPME guarantees only 80 percent of the loan. The collateral which the banks are entitled to request cannot exceed 10 percent of the loan.  Another 1 billion euros will be distributed for loans aiming to cover the purchase cost of raw materials and other goods or liabilities to suppliers. This part of the programme expires at the end of 2011.

 

ATHENS NEWS 16/11/2009, page: 7