Pan-European Guarantee Fund financing program, totaling €1.6 billion

For SMEs and Small MidCaps, with the guarantee of the European Investment Fund.

By your company’s side

Purpose of funding

Investments in tangible and/or intangible assets, permanent working capital, credit through an open (current) account (working capital limit), annually renewed for a specific fixed maximum duration, refinancing of loans.

Duration of financing

Up to 7 years for investment loans, including any grace period (on conditions, the maximum duration may be 10 years) and up to 5 years for working capital credit limits. Repayment through equal monthly, 3-month, or 6-month amortization or non-equal installments may include a balloon.

Interest rate

The interest rate margin applied to the program's financing shall be lower than the standard margin that the bank would apply, in line with its pricing policy, to similar financing arrangements not covered by the EIF guarantee, including the guarantee fee. The interest rate shall be 3M or 6M Euribor (a zero rate shall apply in the event of a negative rate), plus interest margin and the levy under Law 128/75.

What is the Pan-European Guarantee Fund financing program through EIF?

The National Bank of Greece, following an agreement with the European Investment Fund (EIF), participates in the Pan-European Guarantee Fund (EGF) lending program for the financing of Micro, Small, and Medium Enterprises (SMEs) and Small Midcaps with favorable terms. In particular, the 70% guarantee provided by the EIF (acting on behalf of the EGF) will support financing for investment in tangible and intangible fixed assets and liquidity support for SMEs and Small Midcaps.
Read the press release here.
NGB business

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Group Chief Operating Officer at National Bank of Greece
NGB business

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General Manager of Corporate and Investment Banking

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Businesses that are eligible for financing, regardless of legal form, are those which meet specific eligibility criteria, including the following:

Recently set up, new and existing Micro, Small or Medium Enterprises (SMEs), or Small Midcaps). In particular:

  • Micro, Small, and Medium-sized Enterprises (SMEs) include businesses with less than 250 employees and an annual turnover of not more than EUR 50 million or a total annual balance sheet of not more than EUR 43 million, according to the Recommendation Commission 2003/361 / EC.
    Furthermore, concerning SMEs: a) "Microenterprises" (including self-employed persons) are businesses that employ less than ten (10) employees and have an annual turnover or total annual balance sheet not exceeding EUR 2 million, and b) "Small enterprises" (including self-employed persons) are businesses that employ less than fifty (50) employees and have an annual turnover or total annual balance sheet not exceeding EUR 10 million.
  • Small Midcaps are businesses that are not SMEs, and that employ up to 499 staff in terms of Annual Work Units (AWU), as per Commission Recommendation 2003/361/EC
    They do not constitute an "Undertaking in Difficulty" (within the meaning of article 2 paragraph 18 of the 651/2014 General Exemption Regulation, article 2 par. 14 of the Agricultural Exemption Regulation, or article 3 par. 5 of the Fisheries Exemption Regulation) in the sense that:
    • either A) they are not an Undertaking in Difficulty at the time of signing the financing contract under this program,
    • or B) they are Undertaking in Difficulty at the time of signature of the financing agreement under this program but were not Undertakings in difficulty on 31.12.2019, unless they are Micro or Small Firms which were Undertakings in difficulty on 31.12.2019 but, at the time of signature of the financing agreement under this program 

  • are not subject to collective insolvency proceedings under national law, and
  • where they have received rescue aid,
    • it has nevertheless been repaid (in the case of aid in the form of a loan) or has expired (in the case of aid in the form of a guarantee) at the time of signature of the financing agreement under this program; or 
    • where they have received restructuring aid, at the time of signature of the financing agreement under this program they are no longer subject to a restructuring plan.
    • They are not essentially active in one or more Excluded Sectors of the EIB Group, as set out below (the European Investment Bank/EIB and the EIF are jointly referred to as the "EIB Group")

     

  • It is not active in the financial sector.
  • If the business is active in the primary agricultural sector, processing, and marketing agricultural products, and fishery or aquacultural sectors, additional criteria should be met.
  • They have not violated any restrictive measures (as set out below).
  • The persons responsible for the representation, decision-making, and control of the business should not have been sanctioned.
  • They should not be in "Exclusion Status."

 

  • they should not have declared bankruptcy, be under liquidation or compulsory administration, have entered into an out-of-court settlement with their lenders, or suspended/ interrupted their business activities, or be subject to conciliation with their lenders, or under any other situation or procedure similar to the foregoing provided for by national laws and regulations;
  • during the last five (5) years, they should not have been convicted by a final court judgment or administrative decision of having failed to meet their obligations in respect of taxes due to the Greek state or contributions to social security funds under applicable law unless such liabilities have been paid or a binding arrangement has been made for their payment;
  • during the last five (5) years, the business or any person authorized for the business's representation, decision-making, and control, should not have been convicted, as per a final, irrevocable judicial or administrative decision, for committing a serious professional act of misconduct, willfully or out of gross negligence, which would affect the ability of the business to be financed and which conviction refers to any of the following cases:
    • cases of wilful misconduct or gross negligence in providing false information in the context of the obligation to submit the necessary information to verify the absence of grounds for exclusion or fulfillment of the eligibility or selection criteria or in the context of enforcing a legal commitment/agreement
    • concluding an agreement with other persons or businesses with a view to distorting competition
    • an attempt to influence the decisions of the contracting authority during the award procedure, as defined in Article 2 of the Financial Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of July 18, 2018 on the financial rules applicable to the general budget of the Union, as applicable from time to time (hereinafter "Financial Regulation")
    • attempt to obtain confidential information that may result in an unfair advantage in the award procedure, as defined in Article 2 of the Financial Regulation
  • during the last five (5) years, and based on a final judicial or administrative decision, the business or the persons authorized for the business's representation, decision-making, and control should not have committed any of the following acts:
    • fraud
    • bribery
    • participation in criminal organizations
    • money laundering or financing of terrorism
    • terrorist crimes or crimes related to terrorist activities, or incitement, complicity, incitement, or attempt to commit the above crimes
    • child labor or other criminal acts related to human trafficking
    • the Borrower's business is not included in the published list of economic operators excluded or subject to a financial penalty of the EU EDES database, which is managed by the European Commission
  • They are not engaged in "Illegal Activities" (as set out hereinbelow).
  • They have not benefited from state aid, which has been declared illegal or incompatible with a Commission decision and which has not yet been repaid.
  • Their outstanding debts deriving from any financing agreement entered with the Bank or another Credit Institution should not be more than 20 days past due (to this effect, the business submits a relevant solemn declaration and the bank conducts reasonable controls in line with its standard policies).
  • They should not be located in a "non-compliant jurisdiction".

"Illegal Activity" means any of the following illegal activities or activities carried out for illegal purposes, under applicable law, in any of the following areas: (i) fraud, corruption, coercion, collusion or obstruction; (ii) money laundering, terrorist financing or fiscal offenses as defined in the Anti-Money Laundering directives; and (iii) fraud and other illegal activities against the financial interests of the EIB, EIF, and EU, as defined in the PIF Directive (Directive EU 2017/1371 of the European Parliament and of the Council of July 5, 2017, on combating, through criminal law, fraud against the financial interests of the Union, as amended and in force).

"Restrictive Measures" are:

  • any restrictive measures adopted as per provisions of the Treaty on European Union and the Treaty on the functioning of the European Union, and/ or
  • any financial sanctions adopted from time to time by the United Nations and any organization or person legally designated or authorized by the United Nations to adopt, administer, implement and/or enforce such measures, and/or
  • any financial sanctions adopted from time to time by the United States Government and any department, service or office thereof, including the Office of Foreign Asset Control (OFAC), the
    US Department of the Treasury, the US Department of State and/or the US Department of Commerce.

"Sanctioned person" is any person or entity, individual or group of individuals, which is the subject of Sanctions or against whom Sanctions have been imposed.

"Non-compliant jurisdiction" is the jurisdiction which:

  • is listed in Annex I to the European Council conclusions on the revised list of non-cooperating EU jurisdictions for tax purposes;
  • it is included in the list of OECD/G20 jurisdictions that have not satisfactorily implemented tax transparency standards;
    (c) listed in the Annex to Commission Delegated Regulation (EU) 2016/1675 of 14 July 2016 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council, which identifies high-risk third countries with strategic deficiencies; 
  • is included in the Annex of Commission Delegated Regulation (EU) 2016/1675 of July 14, 2016, on "Supplementing Directive 2015/849 of the European Parliament and of the Council which lists high-risk third countries characterized by strategic deficiencies",
  • rated as "partially compliant" or "non-compliant", including the respective interim ratings, by the Organization for Economic Co-operation and Development and the Global Forum on Transparency and Exchange of Information for Tax Purposes, in accordance with the international standard for exchange of information on request;
  • is included in the Economic Action Group's statement "High-risk jurisdictions subject to a call for action"; or
  • is included in the Economic Task Force declaration 'Jurisdictions under increased monitoring'; 
  • is included in the Economic Task Force declaration 'Jurisdictions under increased monitoring'; 
    as the above annexes, lists, lists, declarations, instructions, etc., specifying the criteria for their designation may be amended and/or supplemented from time to time.
     

"Excluded Sectors of the EIB Group":

  • Production or activities involving harmful or exploitative forms of forced labour/harmful child labour,
  • Production or marketing of any product or activity considered illegal under the laws or regulations of the Member State where the business is established or international agreements and covenants,
  • Any business related to pornography or prostitution,
  • Production or trade of wild animals or wildlife products governed by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES),
  • Production or use, or marketing of hazardous materials such as radioactive materials (except medical isotopes and materials for diagnosis and treatment in healthcare), irregular asbestos fibers and products containing PCBs,
  • Cross-border trade in waste and waste products, unless it complies with the Basel Convention and key national and EU regulations, without excluding the use of waste as fuel for district heating purposes,
  • Unsustainable fishing methods (i.e., drift fishing in the marine environment using nets longer than 2.5 km and explosion fishing),
  • Manufacture or trade of medicinal products, pesticides/herbicides, chemicals, ozone-depleting substances, and other dangerous substances subject to international phasing out or prohibition,
  • Destruction of critical habitats,
  • Production and distribution of racist, anti-democratic and/or neo-Nazi media,
  • Tobacco, if it is an essential part (over 10%) of primary funded business activities of an investment project or the business's turnover,
  • Live animals for scientific and experimental purposes, including their breeding, unless the activity in question complies with Directive 2010/63/EU, as amended by Regulation (EU) 2019/1010 of the European Parliament and of the Council for the protection of animals used for scientific purposes,
  • Ammunition and weapons, military/police equipment, infrastructure or penitentiary facilities, prisons,
  • Gambling, casinos, and equivalent enterprises or hotels hosting such facilities,
  • Commercial concessions and logging in tropical natural forests, Conversion of natural forest into plantation,
  • Purchase of logging equipment for use in tropical natural forests or forests of high environmental value in all areas and activities leading to clear felling and/or degradation of tropical natural forests or high nature-value forests,
  • New palm oil plantations,
  • Any business with political or religious content.

The program is implemented via two distinct guarantee agreements (Uncapped Guarantee and Capped Guarantee) (hereinafter jointly referred to as "Subprograms"), entered between NBG and the EIF with the following features:

EIF EGF Uncapped Guarantee EIF EGF Capped Guarantee
Budget: € 1.250.000.000 € 350.000.000
Guarantee Rate: 70%
Purpose of financing:
  • investments in tangible and/ or intangible assets,  
  • working capital of a more permanent nature,
  • credit through open (current) account (working capital limit), annually renewed for a specific fixed maximum renewal duration (in line with the details mentioned below).
  • Refinancing of existing liabilities
Type of financing agreements:
  • Loan (amortization) agreement for the purposes of servicing loans for fixed assets and working capital of a more permanent nature, 
  • Bond Loan Agreement (bilateral, non convertible), 
  • Credit through open (current) account agreement for the servicing of the working capital limit,
  • The refinancing of existing liabilities is carried out via all the said forms of financing, except for credit through open (current) account
     
Duration 
(determined by the agreement execution date):
 
  • up to 5 years for fixed term financing including any grace period that may be approved
  • up to 3 years for financing through working capital limits (Credit through open (current) account), including their annual renewal.

It is possible to convert a limit into a fixed-term loan and repay it through predetermined installments with a maximum term of 5 years (as of the agreement execution date).

  • up to 7 years for fixed term financing (on conditions, the maximum duration may be 10 years) including any grace period that may be approved
  •  up to 5 years for financing through working capital limits (Credit through open (current) account), including their annual renewals.

It is possible to convert a limit into a fixed-term loan and repay it through predetermined installments with a maximum term of 7 years (as of the agreement execution date).

Maximum Loan Amount It depends on the aid regime in which the business will be included (as specified below)
Frequency of installments (excluding working capital limits): Repayment through equal monthly, 3-month, or 6-month amortization installments or non-equal installments may include a balloon installment.
Interest rate:

3M or 6M Euribor (a zero rate shall apply in the event of a negative rate), plus interest margin and the levy under Law 128/75 applicable from time to time.

Specifically, with regard to Bond Loans, a EURIBOR Derived interest rate can be stipulated on the first and the last interest period.

It is noted that the interest rate margin applied to the financing of the program shall be lower than the standard margin that the bank would apply, in line with its pricing policy, to similar financing arrangements that are not covered by the EIF guarantee including the guarantee fee.

Guarantee Fee (applies on the guaranteed part of the financing and is included in the interest rate margin): 0,70% 0,20%
Interest posted on: 30.06 and 31.12 of each year.
Collateral: Apart from the guarantee provided, the usual collateral (personal/ real) can be obtained.
Other commissions/ fees As per the current NBG rates and charges for this form of financing Rates and Charges (nbg.gr)
Available through to: 30/06/2022 (agreement execution date)
Disbursements:
In a lump sum or partially within the grace period
Early repayment: It can be fully or partially repaid prior to the expiry date of the loan, without any penalty or charges unless contractually agreed in cases of Bond Loans.

For further information and to submit your application, visit any NBG Branch, or contact your NBG Relationship Manager.

Provide an envelope with the following necessary documents to submit and assess your request for financing from the bank with the guarantee of the EIF.

In addition to the standard documentation (such as balance sheets, balances, periodic VAT returns, E1 forms), you also need to submit:

  • Application for financing, together with a list of any other documents attached, duly completed and signed by the business
  • Business/investment plan of the company as well as specific supporting documents related to the expenditure to be financed (e.g., offers - preferential offers, proof of equity participation, certificate of debt showing the amount and timeliness of the debt requested to be refinanced, etc.)
  • A list of active KAD numbers via taxisnet or copies of the certificate of business commencement and any change therein issued by the competent Tax Office.
  • Staff data:
    • Analytical Periodic Declarations (ARDs) for the last year
    • in case the company does not employ any staff a declaration by the legal representative that the company did not employ any staff during the last closed financial year
  • Shareholder/corporate structure data:
    • For capital companies (SA, Limited Liability Company, Private Company): copy of the pages of the Book of Proprietors/Shareholders indicating the current Corporate/Shareholder structure as at the date the application is filed, or, alternatively, the minutes of the most recent General Meeting of Shareholders including the names of Partners/ Shareholders and the company shares held in total.
    • For personal companies (General Partnerships, Limited Partnerships) the company's articles of association and any amendments thereto or any codification thereof with all company changes.
  • Financial data (balance sheets/balance sheets etc.) of the last closed financial year of any affiliated or cooperating companies
  • Data on the number of staff employed in the last year of any affiliated/collaborating undertakings
  • Declaration of aid under the Temporary Support Framework (Template provided by the Bank)
  • Declaration on enterprise size determination status (Template provided by the Bank)
  • Declaration of eligibility (Template provided by the Bank)
  • Formal declaration of the current status in relation to financial institutions (Template provided by the Bank)

Through to 30.06.2022 or until available funds have been used up.

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