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European resources of 4.5 to 6.5 billion euros are being released from the Partnership Agreement for the Development Framework, known in Greece as ESPA, to be rapidly channeled to the real economy so they can be used to mitigate the effects of the coronavirus pandemic.
The government secured those resources following a direct communication between Prime Minister Kyriakos Mitsotakis and the European Commission and the coordinated action of the ministries of Development and Investments, Labor, and Agricultural Development and Food with the competent European agencies.
The release of those resources, not counting the leveraging of resources through funding tools, will allow at first for the supply of the Guarantee Fund with more cash than the originally planned amount of 1 billion euros for the state-guaranteed provision of liquidity to crisis-hit enterprises. The state contribution is now expected to rise from 1 billion to 2 billion euros, leveraging capital of 7 billion euros through bank financing, compared to the original plan for 3.5 billion.
The flexibility secured will allow for the financing of projects exclusively with European Union funds this year, allowing for the redirection of state cash to cover other needs.
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