With the financing of the European Union, the Recovery and Resilience Fund is expected to provide €12.7 billion in low-interest investment loans.
The almost zero borrowing offered by the Recovery and Resilience Fund is complemented by a low-interest Bank loan, offering investors the opportunity to secure favourable financing.
Important Facts about Recovery and Resilience Fund loans:
- The minimum interest rate for the loans granted by the Fund is set at 0.35%.
- The duration of the loan cannot be shorter than 3 years and longer than 15 years, depending on the nature of the investment and the amount of the financing.
- The investor should only cover 20% of the Investment with Equity Capital
The financial structure of the investments under the Recovery and Resilience Fund is expected to be as follows:
| Funding | Participation rate |
|---|---|
| Loan through Recovery and Resilience Fund at an interest rate of 0.35% | Up to 50% of the Budget |
| Low Interest Bank Loan | Up to 30% of the Budget |
| Investor’s Equity Participation | 20% of the Budget |
The first step for securing the Financing is the submission of a file to the Cooperation Bank, accompanied by the necessary documentation of each Economic and Technical Study in relation to the presentation of the Investment Plan. HBI undertakes the preparation and presentation of Techno-economic analysis, based on the standards of the Banks on behlaf of the investors.
After the submission of the Envelope, and if the assessment is positive, the Bank undertakes to inform the Investors regarding the terms of the Loan and the approved Financing Scheme. An Independent Auditor will then be selected to take over:
- the control of the investment in accordance with the provisions of the CDF
- the determination of the eligible Budget of the Investment
- the control of the cumulation of State aid
The total loans of 12.7 billion. euros of TAF will be channelled:
- Green transition (€4.9 billion) and digital transformation (€2.6 billion)
- Research and innovation (€1.3 billion) by supporting research and innovation and by promoting pioneering and innovative infrastructures.
- Extroversion (€3.2 billion) by strengthening the outward orientation of businesses towards the local and international economy.
- Mergers and acquisitions (€0.7 billion) through the creation of economies of scale and the promotion of mergers and acquisitions.