New credit expansion tool introduced

The new platform designed by the Hellenic Development Bank through which all small and medium-sized enterprises that want to get a loan will “introduce themselves” by applying for a loan is aimed at strengthening business access to bank financing.

The new platform will utilize the “Know Your Customer” service, through which the HDB will check the creditworthiness of SMEs, cross-checking with AADE, EFKA and Teiresias to see if they have debts to the state or the banks and social security funds, so as to establish whether the request for financing is to be rejected during the initial stage of their evaluation.

The aim, as described on Tuesday by Deputy Minister of Development Yannis Tsakiris, is to gradually expand the range of businesses that will gain access to bank lending from the current 40,000 to 100,000.

“Unfortunately, banks are the only distribution channel for financial products,” Tsakiris pointed out, and “doubling the potential number of SMEs is a huge step that we need to achieve.”