Τhe modern financing tools of the Hellenic Development Bank (HDB) contribute to the green transformation of small and medium sized entrepreneurship, the preservation and increase of jobs and the qualitative change of the country’s production model, according to the conclusions of a survey conducted by the Foundation for Economic and Industrial Research (IOBE).
Based on the GTR index, it emerges that 90% of the loans of the Hellenic Development Bank were granted to sectors related to green transition, while 55% were directed to activities ranked among the top priority actions of the GTR index.
Contribution to GDP and supporting employment
The Hellenic Development Bank contributed 8.5 billion euros to GDP while supporting the maintenance or creation of 280,000 jobs in the period 2019-2022.
For every 1-million-euro loan through the HDB, 33 jobs are supported in Greece.
The green bank of SMEs
The Hellenic Development Bank, through the “Green Co-financed Loans” program, with a budget of 415 million euros, supported investment projects in the sectors of Green Mobility, Energy Saving/Energy Upgrade and Energy Production through Renewable Sources. Βased on this program, small and medium-sized businesses are given the opportunity to implement Green Transition investment projects aiming to reduce gas emissions, protect the environment and reduce energy consumption costs.
In order to measure the relationship between HDB financing and the green transition, IOBE created a special GTR (Green Transition Ratio) index, with the view to demonstrating economic activities that present greater investment needs and higher prospects of contribution to the goals of sustainable development of the Greek economy.
Support to micro-enterprises, which is a priority for the Bank, is demonstrated in practice:
In the enterprises financed by HDB programs, over 56% of the supported jobs concern enterprises with a turnover of less than 10 million euros, and 33% enterprises with a turnover of less than 2 million euros.
Special mention is made of HDB’s contribution to the generation of value added (GVA) in Greece.
Over 52% of the contribution to GVA comes from businesses with a turnover of less than 10 million euros.
The programs of the Hellenic Development Bank also provide additional income for the employed and higher revenue for the state:
– 5.2 billion euros in income generation for the employed in the period 2019-2022.
For every 1 euro of loan, 0.61 euro of income is generated for workers throughout the Greek economy.
– 3.4 billion euros of state revenue (through taxes, insurance contributions).
For every 1 euro of loan, 0.4 euro of government revenue is created from the businesses that were financed across the entire spectrum of the Greek economy.
The chairman of the Board of Directors of the Hellenic Development Bank, Giorgos Zavvos, commented: “The Hellenic Development Bank has systematically established itself as the “green development bank for small and medium sized entrepreneurship” in Greece.
Using targeted financial tools for the implementation of the ambitious development policy of the government, which is focused on tackling climate change and sustainable development, the Hellenic Development Bank has a significant economic and environmental footprint in improving the conditions of small and medium-sized enterprises.
Green and sustainable development is now a main pillar of the new strategy followed by the Hellenic Development Bank. Through our innovative financing tools, we contribute to the green transformation, income generation, preservation and creation of jobs, as well as the increase of state revenue.”
