The HDB-TMEDE Loan Guarantee Fund continues to support the construction industry

An attractive tool counterbalancing the rise in interest rates

TMEDE and the Hellenic Development Bank held an information session regarding the financing tool they created a few months ago to support the construction industry. The event, hosted at the TMEDE headquarters, was attended by representatives of the eight cooperating banks providing the loans disbursed through the programme, the sectoral organisations of the Construction Industry (Association of Greek Contracting Companies SATE, PanHellenic Association of Engineers Contractors of Public Works PEDMEDE, PanHellenic Union of Public Works Constructions Associations PESEDE, PanHellenic Association of Mechanical and Electrical Engineers Contractors of Public Works PEDMIEDE, Hellenic Association of Consulting Firms HELLASCO, Greek Planners Association SEPOX, Civil Engineers, Architects, Naval Architects and Marine Engineers, Surveying Engineers, etc.) and a representative of the Technical Chamber of Greece.

The Hellenic Development Bank (HDB) and the Engineers and Public Works Contractors Fund (TMEDE) continue to offer their attractive financing product named HDB-TMEDE Loan Guarantee Fund, aiming to support the construction industry, operating as a loan guarantee for SMEs that are granted loans from the cooperating banks.

The tool meets the actual needs of construction companies, SMEs in their majority, which, for various reasons, have limited access to financing products through traditional channels.

For this reason, and to support and facilitate access of Greek engineers, designers and constructors to financing, the Hellenic Development Bank, HDB, created this product after signing a Memorandum of Understanding with TMEDE on 17 May 2021.

The new Fund provides guarantees for loans granted by the eight cooperating banks (Alpha Bank, National Bank, Eurobank, Piraeus Bank, Attica Bank, Optima Bank, Cooperative Bank of Thessaly, and Cooperative Bank of Karditsa) to make financing accessible to Greek Engineers, Designers and Constructors, thousands of freelancers and small and medium-sized enterprises.

This joint effort of TMEDE and the Hellenic Development Bank significantly facilitates and expands access to business financing, creating a targeted financing tool aimed at the engineering, design and construction sector.

Particularly now, in an unfavourable international environment and unstable global economic conditions, the HDB-TMEDE Fund aims to counterbalance the international interest rate increase, allowing construction companies to become leading actors in the construction boom underway.

The CEO of the Hellenic Development Bank, Ms Athina Chatzipetrou, noted:

When the cost of money is rapidly increasing, and access to bank financing becomes more difficult for professionals, the Hellenic Development Bank and TMEDE work together and create a safety net for thousands of freelance professionals in the engineering sector, design and construction of public works. One more guarantee programme by HDB unlocks the door of the banking system for sound, small and medium-sized enterprises, meeting the primary goal of development for all.

On his part, the President of TMEDE, Mr Konstantinos Makedos, remarked:

We are experiencing a contradiction. While investments in infrastructure and construction are significantly expanding, the construction industry faces difficulties meeting their financing needs with attractive products and simple procedures tailored to their needs. The HDB-TMEDE Fund is concrete proof that knowledge of the actual needs of a business sector and willingness to create flexible products free of red-tape obstacles can create products of great assistance.

At the end of the QA session with the participants, the President of TMEDE noted that

the conclusion arising from the meeting today is that the executives of the two bodies (TMEDE and HDB) will work closely together, taking into consideration the remarks of the organisations to create more products needed by the construction industry.