1. " Implementing JEREMIE in Greece: objective and products for SMEs, perspectives" " Implementing JEREMIE in Greece: objective and products for SMEs, perspectives" Panagiotis Drossos Secretary General of Investments & Development Secretary General of Investments & Development October 2008

2. The economic environment in Greece with the aim to achieving Real convergence Economic policy of gradual adaptation Stable macroeconomic environment

3. Strategic objectives: IIIInnovation, digital convergence and R&D IIIInvestments in human capital SSSSelf-knowledge… CCCConfidence… AAAAmbition… The strategic approach of the NSRF 2007-2013 with emphasis on Innovation and Entrepreneurship

4. Gap analysis & Market Failure  Approximately one third of the Greek enterprises (more than 300,000) do not have access to credit.  High lending costs and level of collateral are perceived to discourage SMEs from resorting to the financial system.  High risk and lack of financial information are perceived to discourage the banks from granting loans to SMEs, especially start-ups.  Only 8,000 new enterprises resort to the financial system on an annual basis. 40,000-50,000 new enterprises are established every year.  Enterprises without collateral, “new economy” enterprises, women and immigrants have difficulty in accessing the banking system.

5.  The JEREMIE Small & Micro Loans Financial Product aims at supporting individual entrepreneurs, micro and small enterprises, in Greece through funding and/or risk covering of micro & small loans Proposed Product

6. Purpose Purpose The Product aims to 1.Facilitate access to Finance 2.Provide improved financial terms and lower collateral requirements to individual entrepreneurs, micro & small enterprises in order to enhance their activity, increase competitiveness & stimulate development

7. Structure Structure  The Product will be provided to the targeted enterprises through Financial Intermediaries (FIs) that will provide loans to those enterprises. In particular, the Product will provide either i Funds to the FIs that will be subsequently on-lent to the targeted enterprises i Funds to the FIs that will be subsequently on-lent to the targeted enterprisesor ii Risk coverage on loans that the FIs will provide to the targeted enterprises ii Risk coverage on loans that the FIs will provide to the targeted enterprises  The JEREMIE Holding Fund (HF) (acting in the name of the Hellenic Republic) will enter into contractual agreement (s) with the FIs that will assume the responsibility of the origination, due diligence, documentation, execution, reporting and monitoring of the operations. The Hellenic Republic will remain Owner of the funds.

8. Investment Target Investment Target JEREMIE Small and Micro Loans Financial Product Up to EUR 40 m JEREMIE Small and Micro Loans Financial Product Up to EUR 40 m Sub-Product 2: Support loan financing for “innovation & entrepreneurship” Up to EUR 20 m Sub-Product 2: Support loan financing for “innovation & entrepreneurship” Up to EUR 20 m Sub-Product 1: Support loan financing for start-ups Up to EUR 20 m Sub-Product 1: Support loan financing for start-ups Up to EUR 20 m Another target group could be those entrepreneurs that would like to commercialize a registered patent with demonstrable market potential. An avenue that might be explored is combining it with an initial grant funding for the patent registration. Another target group could be those entrepreneurs that would like to commercialize a registered patent with demonstrable market potential. An avenue that might be explored is combining it with an initial grant funding for the patent registration.

9. Pricing The price will be calculated with reference to the risk covered. The price will be calculated with reference to the risk covered. The Product should be priced in a way that facilitates access to finance to eligible SMEs and/or improves their financing conditions, but also in a way that provides for the sustainability of the HF (depending on the level of risk that the Managing Authority is willing to take). The Product should be priced in a way that facilitates access to finance to eligible SMEs and/or improves their financing conditions, but also in a way that provides for the sustainability of the HF (depending on the level of risk that the Managing Authority is willing to take).

10. The proposed Product is expected to: The proposed Product is expected to: 3. Foster competitiveness of the targeted enterprises and increase their efficiency 1. E EE Enhance access to finance and improve financial conditions for SMEs given the lower collateral requirements 2. Provide higher availability of finance to SMEs 4. Encourage innovation and entrepreneurship 5. Create new employment opportunities 6. Ensure a high leverage effect for public money 7. Assist a high number of beneficiaries resulting in the high visibility of public support 8. Reduce the risk element for the FIs 9. Multiply the effect and re-utilisation of the resources (revolving character). Value Added Value Added

11. The JEREMIE initiative, offers new opportunities for Member States and Regions to invest and re-invest Structural Funds using a range of financial instruments instead of or in combination with grants. The JEREMIE initiative, offers new opportunities for Member States and Regions to invest and re-invest Structural Funds using a range of financial instruments instead of or in combination with grants. Greece must take the Chance by  Gaining additional value or leverage  Increasing the competiveness and economic development  Encouraging innovation & entrepreneurship Moreover: Funds will be used over a longer period, thus benefiting SMEs overall by reducing the risk in their investments Funds will be used over a longer period, thus benefiting SMEs overall by reducing the risk in their investments A sustainable tool to support SME finance

12. www.espa.grwww.mnec.grwww.ggea.gr