Greece secures low-cost recovery fund loans

Greece will not pay extra interest on loans from the European Union’s Recovery and Resilience Facility, a program providing 35.95 billion euros to the country.

The EU created the fund following the pandemic, marking the first time it jointly borrowed money to finance investments and reforms. Greece has received 18.22 billion euros in grants and 17.73 billion euros in loans, with funds released based on completed milestones rather than spending alone.

The country is uniquely directing its 17.73 billion euro loan portion entirely towards the private sector, aiming to close an investment gap created by a decade-long economic crisis. This use of funds is expected to generate over 45 billion euros in total investment and support sustainable growth. The loans carry low, fixed interest rates starting at 0.35% for small and medium-sized businesses, or around 1% for other investments, funding business plans, guarantees, venture capital, and social programs.

Specifically, the Greek region of Thessaly has secured 648.7 million euros in loans from the Recovery Fund for projects totaling 1.39 billion euros. These funds are also supporting the repair of road and rail networks damaged by recent storms, as well as upgrades to hospitals and health centers. Beyond the Recovery Fund, Thessaly also benefits from separate regional and national development programs. Ultimately, citizens will judge the success of these initiatives based on improvements to their daily lives.