Development Law Financial Instrument Guarantee Fund (DeLFI GF)

Piraeus Bank, in collaboration with the Hellenic Development Bank–HDB participates in the Development Law Financial Guarantee Fund “DeLFI GF” and offers financing to small and medium enterprises to implement their investment plan that has been subject to an aid scheme of the Development Law 4887/2022.

Financing is offered with preferential terms and reduced collateral through:

  • Long Term Loan: investment loan to cover private participation
  • Short Term Loan: working capital in advance of the grant
IDEAL FOR

Micro, Small and Medium Enterprises that have received approval to be included in an aid regime of the Development Law 4887/2022.
REPAYMENT METHOD

Long Term Loan:

  • Monthly
  • 3-monthly
  • 6- monthly or
  • annual instalments

Repaying :

principal & interest combined or
principal & interest apart

Short Term Loan :

  • Bullet payment
INTEREST RATE
Variable Based on Euribor 3m
OTHER FEATURES
  • Fund Guarantee for 80% of loan amount
  • Reduced collaterals
  • Selected type of guarantee fee:

    –  with state aid
    –  without state aid

IDEAL FOR

Micro, Small and Medium Enterprises that have received approval to be included in an aid regime of the Development Law 4887/2022.

REPAYMENT METHOD

Long Term Loan:

  • Monthly
  • 3-monthly
  • 6- monthly or
  • annual instalments

Repaying :

principal & interest combined or
principal & interest apart

Short Term Loan :

  • Bullet payment


INTEREST RATE
Variable Based on Euribor 3m
OTHER FEATURES
  • Fund Guarantee for 80% of loan amount
  • Reduced collaterals
  • Selected type of guarantee fee:

    –  with state aid
    –  without state aid

Eligibility criteria

The program is open to enterprises that meet cumulatively the following criteria:

  • Are Small and Medium Enterprises (definition of SMEs (Annex I of EP 651/2014)
  • Their investment plan is subject to an aid scheme of the Development Law 4887/2022.
  • Implementation actions should not have started before submitting the loan application to the information system "Know your Customer KYC“.
  • They are considered creditworthy in accordance with the current credit policy and internal procedures of the Bank.
  • They have not been subject to collective insolvency proceedings
  • They do not have overdue debts over 90 days when submitting application for funding
  • They are companies for which there are no grounds for exclusion of article 40 of law 4488/17 (A 137/139/17)
  • There is no pending recovery order due to previous illegal and incompatible state aid based on an EU or WEU decision
  • Τhey joined HDB programs (formerly ETEAN), which have been completed or are in force and have not shown adverse transactional behavior in the repayment of their debts (loan termination or overdue debts for a period of more than ninety (90) days) or in the case where they have shown adverse transactional behavior (loan termination or overdue debts for a period of more than ninety (90) days), have paid their debts in full before submitting the financing application, or if it is a guarantee program, the guarantee amount has not been paid by HDB when signing the Final Recipient Agreement or since the debt in question has been confirmed to the competent tax office., it has been included in a regulation regime, which continues to be in force on the date of submission of the financing application.

Features

Purpose

The financing of SMEs for the implementation of their investment plan that has been subject to an aid scheme of the Development Law 4887/2022 and provided that the cumulation limits of state aid are met (according to article 14 of EC 651/2014), through:

  • Long term loan to cover their private participation. A prerequisite is that bank lending has been indicated in the financing scheme of the investment plan.
  • Short term loan in advance of the approved grant referred to their investment plan

It is mentioned that 25% of the subsidized investment should not comprise any type of State aid, public support or provision.

The following financing scopes are not accepted:

  • Refinancing/restructuring of existing loans,
  • Financing programs of dividends’ payments or shares’ purchase
  • Financing acquisitions and mergers

Amount

€50.000 - €10.000.000 per investment

Duration

  • Long term loan: From 3 up to 10 years (including grace period)
  • Short term loan: From 1 up to 5 years

Interest Rate

Floating interest rate based on Euribor 3m (plus spread)

The interest rates are charged with the interest margin and the contribution of L.128 / 75, which currently amounts to 0.60%.
The customer's final interest rate is determined based on the assessment of its Creditworthiness.

Repayment:

Long Term Loans

  • For Small Businesses and Professionals (Turnover ≤ €2.5 million):
    Monthly or quarterly installments combining principal and interest
  • For Medium Enterprises (€2.5 million /turnover ≤ €50 million): Monthly, quarterly, semi - annual, annual installments of principal & interest combined or principal & interest apart.

Short Term Loans

  • Bullet payment

Grace period

Up to 36 months (during grace period only the interest due will be paid).

Early repayment

Early partial or full repayment is possible without any charge. The capital repaid can not be refinanced.

Currency

Euro (€)

Disbursement

One-off or Partial instalments

  • the 1st disbursement will obligatorily take place within four (4) months from the date of signing the Contract (no extension possible)

In case of partial disbursements:

  • the final date to complete the disbursements is set within 36 months from the date of signing the Contract.

Collaterals

  • Long Term Loan: Up to 40% of the loan amount
  • Short Term Loan: the approved grant referred to the investment plan

Availability Period

The availability period is until 31.12.2025 (final date of signing the loan contract)

Guarantee Fee

Due to the 80% guarantee provided on each loan granted by HDB to the Bank, HDB will receive from the company a guarantee fee, according to one of the following types:

  • With State Aid: Guarantee Fee is calculated on an annual basis on the guaranteed loan amount and is paid once upon the 1st disbursement for the total duration of the loan. It amounts to 0.20% of the guaranteed loan amount.
  • Without State Aid: Guarantee Fee is calculated on the guaranteed loan amount and is based on the safe-harbour premiums of the European Commission’s Notice on guarantees (2008/C 155/02) which depend on the customer's rating. It is paid once upon the 1st disbursement for the total duration of the loan

How to get it

Application on the "Know Your Customer (KYC)" HDB platform

  1. Selection of Bank by the applicant
  2. After applying automatic evaluations of some of the eligibility criteria, the Bank expresses its interest in principle in receiving application. ("Interested" Status).
  3. You receives a unique code per bank which you will enter during your application in the www.ependyseis.gr/mis

Application at www.ependyseis.gr/mis

  1. Enter www.ependyseis.gr/mis with your personal codes (in case of lack of codes you must register)
  2. Fill in the details of the business to be financed in the application adding the unique code generated by the "Know Your Customer (KYC)" HDB platform
  3. Select Piraeus Bank to submit your request
  4. Finalize and submit your application to the system

Application for financing a Piraeus Bank Branch

Once the application process has been completed at www.ependyseis.gr/mis, you may visit a Piraeus Bank branch, bringing along the printed application form.

For more information: