The Financing Agreement for the establishment of a Just Transition Portfolio Fund for Development by the Hellenic Development Bank was signed by the Deputy Minister of National Economy and Finance, Nikos Papathanasis.
The Fund, with a total loan budget of €187 million, is financed with resources from the Transition Programme for Fair Development of the QREN 2021-2027, with the possibility of financing from other European, national and other sources.
The objective of the Transition Portfolio Fund for Fair Development is to create, in a first phase, two Financial Instruments – as “Special Funds” – for the support and development of companies of all sizes, in the areas of Transition to Fair Development, facilitating their access to financing, encouraging investment and entrepreneurship, and the general development of these areas in the context of changing the production model for a smooth and fair transition to the “metalignite” era.
The two special funds
The two financial instruments that will be created through the DAM Portfolio Fund are:
- The JUST DEVELOPMENT TRANSITION LOAN FUND, which will grant loans for Investment Expenses and Working Capital, with a 3% interest bonus for 3 years for the implementation of investments in TAM areas.
- JUST DEVELOPMENT TRANSITION INVESTMENT LOAN GUARANTEE FUND, which will provide loans for Investment Expenditures, with a 3% interest subsidy for 2 years for the implementation of investments in TAM areas.
The benefits of the Financial Instruments of the DAM Portfolio Fund may be combined with other grant programmes, which are implemented in separate operations of the Transition Programme for Fair Development, always respecting the State Aid rules applicable on a case-by-case basis.
“We continue to implement our government programme, with the aim of dual convergence, both with the rest of Europe and, above all, between the country’s regions,” stressed the Deputy Minister of Economy and National Finance, Nikos Papathanasis. As he said, the ultimate goal of this specific intervention, which is being launched in parallel with the implementation of the broader DAM Programme, worth €1.6 billion, is to support investment projects and the development of the economy in areas affected by the energy transition, the preservation of existing ones and the creation of new and better-paid jobs, especially for women and young people who want to stay in their jobs.
