Interest on canceled state loans |

The Ministry of Finance has granted recipients of cheap loans granted by the state during the pandemic (known as “deposit to be returned”) the possibility of repaying their contributions in up to 60 monthly installments without paying interest. This concerns some 700,000 companies which have received a total of 8.3 billion euros.

The ministerial decision rendered therefore abolished the interest rate of 0.94% initially provided for by law.

This is the fifth government intervention in the program of repayable funds issued during the closures, thus offering additional support to companies and independent professionals who must return around 3 billion euros to the State.

It started with reducing the share of loans that had to be repaid to the state: from the fourth to the seventh phase, the repayable amount was reduced to 50%. In the process, the number of tranches increased from 40 to 60, while Prime Minister Kyriakos Mitsotakis added two other interventions in September: the reduction of up to 25% of the repayable section of loans under certain conditions, and the remission additional 15% for those who pay their contribution in a single payment before December 31, 2021.

The new intervention has now cleared the way for the Independent Public Revenue Authority to upload the precise amount each business and professional must repay – which is expected by the end of this month. The amount due will appear on the IAPR website (, under the Debt Data entry of the arrangement and payment.

The repayable amount of each state loan in the program must be repaid in up to 60 monthly installments, with the first due by the end of January 2022. The amount to be repaid varies between 25% and 50%, depending on the decline. of the turnover that the recipients have suffered due to the measures aimed at containing the pandemic. However, companies that are proven to have suffered from the fires in Greece between May 1 and September 2 this year will have nothing to reimburse.

Bernadine J. Perkins