New fund to boost cash flow

The creation of the Guarantee Fund, which will be activated by the Development Ministry in early May to oversee the supply of state-guaranteed working capital of over 7 billion euros up until the end of 2020, marks the start of the economic recovery, through the direct injection of cash into medium-to-large and large businesses.

The ministerial decision for the creation of the new fund, which will be under the purview of the Development Bank, is expected to be signed this week by the ministers of Finance Christos Staikouras and Development Adonis Georgiadis, and his deputy Yiannis Tsakiris. This will then pave the way for the invitation of interest for banks to take part.

According to the blueprint of the decision, the loans that will be issued via the Guarantee Fund will be new money, as the Fund will operate according to strict European Union terms dictating the...