HDB Digitalization Co-Financing Loans

Fixed for the entire loan term or
Variable interest rate based on Euribor 3m plus a margin
60% of the financing is paid. 40% is interest-free.

Two-year interest rate subsidy of 3% which:

• is irreversibly terminated in the event of an overdue payment for more than 30 days
• does not cover the levy of Law 128/75 and any late payment interest rate that, in any case, is due by the customer.

• 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 on the basis of an assessment of its creditworthiness.

For Small Businesses and Professionals with a turnover of up to €2.5 million monthly or quarterly installments
For Medium Enterprises with a turnover of €2.5 million - €50 million monthly, quarterly, semi-annual or annual installments of interest or debit payments.
 During the grace period only, interest is paid

In lump sum or in installments.

The first disbursement (lump sum in full or first installment) of the contract amount must be made within four (4) months from the signing of the contract.

In the case of partial disbursements:

• The 1st disbursement will obligatorily take place within four (4) months from the date of signing the Contract with a final date of June 30th, 2025
• The final date of completion of the disbursements is set within 36 months from the 1st disbursement and in any case until 30.6.2026 (disbursements final date), whichever date from the above comes first

• In full or in part, at any time, without any charge.

The capital repaid can not be refinanced.

The programme is aimed at very small, small and medium enterprises.

• Eligible are SMEs* operating legally in Greece, except for non-residents, holding companies in other companies, companies in the financial sector, companies listed on the stock exchange, public bodies and their subsidiaries, OTAs and their subsidiaries for which the following apply (pdf available only in Greek):
• The NACE code with the highest revenue is eligible
• Maintains an establishment and operates in Greece legally and has been established up to the time of submission of the financing application to the bank
• It is not considered a Troubled Business**
• It is considered a credit-acceptable business in accordance with the applicable credit policy and the bank's internal procedures
• It has not been subject to Insolvency
• It does not present an overdue debt of more than 90 days in its existing loan obligations at the date of the financing application
• There are no grounds for exclusion of Article 40 of Law 4488/2017 (A 137/13.9.17), as applicable
• There is no pending order for the recovery of previous unlawful and incompatible state aid based on an EU or CJEU decision
• If it has joined HDB programs (formerly ETEAN), which have been completed or are in force and has not shown adverse transactional behavior in the repayment of its debts (loan termination or overdue debts for a period of more than ninety (90) days) or in the case where it has shown adverse transactional behavior (loan termination or overdue debts for a period of more than ninety (90) days), has paid its 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
• It has not been barred by a barring decision from the EIB both at the time of submitting a financing request to the Bank and at the time of concluding the Final Recipient Agreement in accordance with the EIB Barring Policy (https://www.eib.org/en/about /accountability/anti-fraud/exclusion/index)

In addition, the company should not participate in activities that:

• Aim at the production or trade of weapons and ammunition, explosives, equipment or infrastructure specially designed for military use, as well as equipment or infrastructure that has the effect of restricting the individual rights and freedom of people (e.g. prisons, detention centers of any kind) or the violation of human rights
• Cause environmental impacts, which are not largely mitigated and/or compensated (including, but not limited to, projects in protected areas, critical habitats and cultural heritage sites)
• Considered morally or ethically controversial, such as human cloning research and animal testing
• Health technology related to human cloning for research or therapeutic purposes and genetically modified organisms / food
• Considered illegal and prohibited by national law
• Associated with online gambling, casinos and illegal activities (pornography, illegal penetration of electronic networks, illegal embezzlement of electronic data)
• In the field of decommissioning or construction of nuclear power plants
• Associated with the production or facilitation of the use of games of chance and related equipment/betting and
• They target the production, processing, processing or specialized distribution of tobacco, as well as activities that facilitate the use of tobacco, e.g. "smoking rooms"

Notes:
*An enterprise is considered any entity, regardless of its legal form, that carries out an economic activity. It includes in particular self-employed persons and family businesses, which carry out a craft or other activity, as well as personal companies or associations of persons, which regularly carry out an economic activity.
**The application of the last sentence of par. 4c of Art. 1 of the GAS, according to which companies that were not problematic on December 31, 2019, but became problematic during the period from January 1, 2020 to December 31, 2021.

Business finance must meet the following conditions:

• Contracts that concern new financing from the bank
• The purpose of the financing is defined as "investment", and in no case does it relate to (a) refinancing of existing borrowing or lines of credit, (b) financing program for the payment of dividends or share purchases, or (c) financing of Acquisitions and Mergers
• Be in the form of a regular maturity loan with a term of 2 to 10 years, including any grace period of up to 24 months
• To be expressed in euros
• Proof through the submitted business plan and during implementation by submitting relevant documents that the financed activities concern one or more of the following key areas:

Development of digital infrastructure (e.g. internet, broadband, mobile networks, satellite technologies, use of data centers, end-user devices, internet of things (IoT), applications, websites, API integration and cloud-based services)
Investments in equipment (Hardware) and automation solutions
Software, application and data investments
Business process improvements facilitated by one or more digital technologies
Development of a strategic monitoring system
Human capital development (e.g. learning and development initiatives related to the digital/and IT upskilling/training of employees and the employment of temporary or permanent IT specialists)
Purchase of Services for other digital upgrade costs, such as digital advertising/promotion (digital marketing), presence on social media (social media), creation of videos to present the company's products, creation of digital content, etc. as well as costs for implementation and certification in digital security standards (e.g. iso27001) and/or digital functionality
Costs of consultants/experts for:

• The analysis of the needs of the business and the correct guidance for adopting the best solution regarding the digital upgrade
• The preparation of a study for the overall management of the investment

Digital intensive improvements namely, the implementation of part of the business of one or more digital technologies related to specific areas such as 3D printing, robotics, IoT, big data and artificial intelligence, drones, virtual reality

In any case, the Eligible Expenses will not concern:

• The purchase of land, unless it is technically necessary for the investment, in which case it can be financed up to 10% of the total business plan
• The agricultural land market
• The purchase of goodwill, licenses or rights to exploit mineral resources and production rights in the agricultural sector
• Duties, taxes, fees and levies

The loan will not be used to finance activities excluded by Regulation (EU) no. 1407/2013 of the Commission of 18 December 2013, regarding the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.

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

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.

The European Investment Bank (EIB), the financial institution of the European Union established in accordance with Article 309 of the Treaty on the Functioning of the European Union, collaborates alongside with the Hellenic Development Bank (HDB), the Greek State and the Financial Intermediaries, in order to finance investment programs that contribute to the goals of the European Union. Learn more about the European Investment Bank (EIB) in supporting enterprises here.