Loans Fund Just Transition Development - JTD

Piraeus Bank, in cooperation with EAT-HDB, participates in the “Just Transition Development - JTD" program and offers financing solutions that incorporate i) interest-free financing for the 50% of the loan as well as ii) a three-year interest rate subsidy of 3%*, supporting SMEs established and aiming to implement an investment plan within the areas defined in the “Fair Development Transition 2021-2027".

Under conditions

* The three-year subsidy of 3% is provided by the Fund, Οn the condition that they will be bank aware or have a delay of less than or equal to 90 days (≤ 90 dpd) on the specific loan.

** For companies with headquarters or a branch present in and investment implemented in areas defined in the “Just Transition Development – JTD” :
- Region of Western Macedonia
- Municipalities of Megalopolis, Tripoli, Gortynia or Oichalia

IDEAL FOR

Small and Medium Enterprises intending to implement a business plan, with the use of financing bearing investor friendly terms.
REPAYMENT METHOD
  • Monthly
  • Quarterlyly
  • Semi-annual,
  • Annual installments
    repaying
    capital and interest combined

or

capital and interest apart
INTEREST RATE
Fixed
for the entire loan duration

or

Variable
Based on Euribor 1m/3m/6m
OTHER FEATURES

Preferential pricing from:

  • Interest-free co-financing by 50% from HDB
  • Up to 3% subsidy* of the interest for the first 3 years on the rest 50% of the loan amount

*under conditions
IDEAL FOR

Small and Medium Enterprises intending to implement a business plan, with the use of financing bearing investor friendly terms.

REPAYMENT METHOD
  • Monthly
  • Quarterlyly
  • Semi-annual,
  • Annual installments
    repaying
    capital and interest combined

or

capital and interest apart

INTEREST RATE
Fixed
for the entire loan duration

or

Variable
Based on Euribor 1m/3m/6m
OTHER FEATURES

Preferential pricing from:

  • Interest-free co-financing by 50% from HDB
  • Up to 3% subsidy* of the interest for the first 3 years on the rest 50% of the loan amount

*under conditions

Eligibility criteria

The program is addressed to Micro, Small and Medium Enterprises (definition of SMEs (Annex I of EP 651/2014) , which operate legally in eligible areas of Just Transition Development – JTD program, except for off-shore, holding groups participating in other companies, companies in the financial sector, public bodies and their subsidiaries, local government organizations and their subsidiaries, with:

  • Eligible NACE CODE (defined by HDB program specifics)
  • Maintain an establishment and operate in Greece legally and have been established up to the time of submitting the financing application to the Bank.
  • They are not considered as an undertaking in difficulty (as defined in point 18 of article 2 of Regulation 651/2014), at the time of submitting the application for funding to the State Aid Information System.
  • Comply with the eligibility criteria and the state aid cumulation limits as set out in the respective State Aid Regulations.
  • They are considered creditworthy in accordance with the Bank’s current credit policy and internal procedures.
  • They have not been subject to collective insolvency proceedings and do not meet the conditions under the domestic legislation under which they may be subject to collective insolvency proceedings at the request of their creditors.
  • They are bank aware (they owe <90 days) at the time of submitting the financing application to the Credit Institution.
  • 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 of previous illegal and incompatible state aid based on an EU or WEU decision
  • They hold valid tax and social security certificates, at the time of submitting the application at the HDB’s KYC platform, as well as the time of the loan’s disbursement. Moreover, they do not have any insolvency issues, based on Teiresias information, at the time of submitting the application at the HDB’s KYC platform, as well as the time of the loan’s disbursement
  • In case the enterprise has previously joined HDB (formerly ETEAN) programs that have expired or are in force, it should not demonstrate adverse transactional behavior in debt repayment, such as a loan contract termination or relevant overdue debts over ninety (90) days or in the case of adverse transaction behavior the recipient has fully repaid his debt before submitting the application for funding or in the event of adverse transaction behavior: (a) in the case of a guarantee scheme, the amount of a guarantee owed has not been paid; Once the said debt has been confirmed to the competent Tax Office, it has been included in a regulatory regime, which continues to be in force on the date of submission of the application
  • They have not been excluded by an exclusion decision from the EIB both at the time of submitting a financing request to the EXO and at the time of concluding the Final Recipient Agreement in accordance with the EIB's Exclusion Policy (https://www.eib.org/en/about/accountability/anti-fraud/exclusion/index).
  • They have been registered in the Register of Beneficial Beneficiaries of article 20 of Law 4557/2018 (Α΄ 139), as applicable, before the date of submission of the financing application, except in the cases of beneficiaries who are expressly exempted from the relevant obligation and provide relevant documentation.
  • They have completed the self-assessment process for the ESG Criteria in the ETA's ESG Tracker, and have submitted the ESG Tracker Performance Report in PDF format to Piraeus Bank when submitting the financing application, where the company's performance against these criteria is reflected.

Features

Purpose

The financing of SMEs to support and expand their operations in the eligible areas, according to their Business Plan and under the conditions of the FDT programm.

  • Special Purpose Working Capital Loans
  • Investment Loans

The following are not considered as acceptable financing purposes:
the refinancing/repayment of existing borrowings,
the financing of a dividend payment plan or the purchase of shares
the financing of Mergers and Acquisitions and
the purchase of land for an amount exceeding 10% of the Fund's contribution to the respective loan
Loan Fees
Expenditure financing pure financial or real estate development activities, when carried out as a financing intermediary, and does not finance the provision of consumer credit services

Amount

From €5,000 up to of €500,000 per company

Duration

From 1 up to 10 years (including grace period)

Grace period

Up to 1 year during which, only interest is paid.

Interest Rate

Fixed for the entire loan duration or Variable based on Euribor 1m/3m/5m plus margin – the interest rate is applicable at the 50% of the loan, since the remaining 50% provided by HDB is holding zero interest

The interest rates are charged with the interest margin and the contribution of L.128 / 75 for the part of the bank’s funds (50%), which currently amounts to 0.60% .
The customer's final interest rate is determined on the basis of an assessment of its Creditworthiness.

Interest rate subsidy

Three-year interest rate subsidy of 3% for 50% of the loan amount, which:

  • Is irrevocably terminated in the event of an overdue payment of more than 90 days
  • Does not cover the levy of Law 128/75 and any late payment interest that, in any case, is borne by the customer.

Repayment

  • 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  and  interest combined or principal and interest apart

Early repayment

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

Currency

Euro (€)

Disbursement:

Disbursements can be either one-off or partial.

The first disbursement (one-time total or first installment) of the amount of the Contract should be made within four (4) months from the signing of the Contract.
In case of partial disbursements:

  • the 1st disbursement will obligatorily take place within four (4) months from the date of signing the Contract, and
  • the final date of completion of the disbursements is set within 24 months from the 1st disbursement and in any case until 31.12.2029 (disbursements final date), whichever date from the above comes first
  • all financed expenses require the submission of documents which will be checked for their relevance to the submitted business plan.

Co-financing from HDB

The loans are co-financed by 50% from interest – free capital from HDB

Collaterals

Up to 100% of the loan amount.

Availability Period

The availability period expires on 31.12.2029

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 & the application. (Status "Interested").
  3. The potential borrower receives a unique code per bank which he/she will enter during his application in the app.opske.gr

Application in app.opske.gr

  1. Enter app.opske.gr with your personal codes (in case of non-existing 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

Self-assessment on the ESG Tracker platform of the EBA

Enter the ESG Tracker digital platform where you must complete the self-assessment process for the ESG criteria and submit the generated ESG Tracker Performance Report (in PDF format) to the Bank when applying for funding. (The results of the self-assessment through the ESG Tracker are not eligibility criteria of the company concerned).

Application for financing in a branch of Piraeus Bank

Once the application process has been completed at app.opske.gr, you may visit a Piraeus Bank branch, carrying the printed application form.

For more information: