The relevant invitation to participate in the Fund is expected to be issued in July. This is basically a formal procedure but necessary as the Banks have been ready for a long time to proceed with the supply of the products concerned to the farmers and the processing companies concerned. In general, the whole process could have been completed since last Spring, but the information says that due to the involvement of the ADE in signing the decisions and announcements of the PAA Measures, changes had to be made to the timetable.
Read in high resolution the weekly Agrenda
It is noted here that it recently signs between the Greek Development Bank managed by the Agricultural Entrepreneurship Fund and the Hellenic Ministry of Culture, the activation of its tool «Additional act», which has been created to facilitate financial institutions to approve the loan for the implementation of investment projects with reduced collateral. It is a tool used in Improvement Plans and is expected to be used in the greenhouse program.
A last-minute change in financial instruments is the provision for step-up consultant fees (the greater the borrowing, the greater the fee). At the same time it is clarified that young farmers participating in a programme (e.g. Young people of 2022 or 2025) will be able to receive a loan of 100% of the land purchase from guarantee and microcredit instruments.
More specifically, the three tools of EUR 160 million expected to be activated are:
Guarantee Tool
- Investments are estimated at between 25,000 and 3,500,000 euros.
- For working capital, an amount of 25,000 to 500,000 euros is provided.
- The repayment period is from 5 to 15 years.
- It is possible for the working capital to be allocated autonomously, i.e. without compulsory investment costs.
- An interest rate subsidy of 4% is foreseen for 4 years.
- A step-by-step consultant fee is foreseen.
Small loan tool
- Loans for investments: 10,000-50,000 euros.
- Loans for working capital: 10,000-50,000 euros. 50% of the loan is funded by the Rural Development Programme 2023-2027 and will be interest-free.
- For the first two years of maturity, 100% of the interest rate will be financed.
- Technical advice on borrowing of EUR 800 is provided
Young farmers' guarantees
Total support up to EUR 90,000. This is a loan with first facility premium which is non-refundable. The first facility premium will be set at 80% of the amount of the loan. In other words, for a loan of EUR 40,000, the premium will be EUR 32,000, so we are talking about total support of EUR 72,000. The beneficiary may choose the amount of the loan. Only young farmers up to 41 years old who already have some agrotechnical, agronomic or zootechnical training based on their degree are addressed.
