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Microfinance @ work: The Greek success story!
DIFASS Project (Interreg IVC) – International Conference
“Access to finance for SME’s – Innovative tools for entrepreneurship support”
Get business done!www.trek.gr
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This is TREK Consulting
Consultancy and Professional Services firm, providing Management and Information Technology services to small, medium and large Organizations all across Europe, North
Africa and the Middle East.
19 years of experience in E.U. funded initiatives more than 1.500 subsidized funded projects More than 4 billion € projects under TREK
supervision Pioneer in Financial Instruments Proffered partner of European Investment Bank in
S.E.E.9/9/2014
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FACTS: 97% are SMEs in E.U. - 98% in Greece 9/10 of SMEs are micro* 90% of E.U. firms are micro - 97% in Greece
* micro: < 10 employees & < 2M €
small: < 50 » & <10M €
medium <250 » & <50M €
9/9/2014
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Facts:
99% of E.U. start-ups are micro firms Micro-enterprises provide 50% of jobs in Greece (30% in E.U.)
Value added contribution from SMEs dropped by 35% in Greece! Employment by SMEs dropped by +35% in Greece!
9/9/2014
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The Case:
9/9/2014
Greece, September 2014
The Greek SME tragedy whilst struggling for financing
TRY THIS:Apply for a loan, or a guarantee from a systemic Bank
YOY GET:Rejection, no questions asked!or best case a 10% interest rate!Remember: ECB rate is 0,05% !
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The Case:…so here come the questions:
How to get financing as a micro – small firm?
How to overcome low “bankability”?
How to overcome bureaucracy from the “Athenian”
Government?
How to pay much less interest rate than the 10% ?
9/9/2014
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The solution:E.U. and EiB join together for the microfinance instrument
Senior loans even to “non bankable” up to 25.000€
Very low interest rates, grace period and other perks!
TO WHOM:Micro, small enterprises, entrepreneurs of all major industries, even start-upers, vulnerary groups and unemployed !
9/9/2014
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The Greek experience: PART A!TREK designed and executed a 6m€ loan fundIntermediary: CB of PeloponneseFocus on: Tourism & exporting agro-productsInterest rate: ~ 2,8% (with the highest country risk, back in
2013)
Benefits:350 small Peloponnese companies/family businesses> 2,000 employees
9/9/2014
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The Greek experience: PART B!TREK designed and executed a 4,5m€ loan fundIntermediary: CB of KarditsaFocus on: contractual & exporting agro-productsInterest rate: ~ 2,0%
Benefits:300 small Peloponnese companies/family businesses> 1,500 employees
9/9/2014
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a good to happen proposition:Initiation of the W.M. Regional Financial Instrument (the WM fund)
Lead by: the Region of W.M.Mobilize: Revolving funds & Private contribution (i.e.
financial Institutions)Est. size: 15 m€Benefit: More than 750 SMEs
3.000-3.500 employees
More than 3.000 households
Promote and support the exporting agro-industry & contractual agriculture
9/9/2014