A new decision by the Ministry of Development, published in the Government Gazette, introduces significant changes to the “Major Investments” aid scheme under Development Law 4887/2022. It amends the program’s call for proposals while introducing stricter deadlines for project audits and completion.
The most significant change, however, concerns the restart of industrial facilities that have suspended operations. Investment projects aimed at restarting such facilities may qualify for aid, provided that the value of the existing fixed equipment accounts for at least 50% of the eligible costs.
This provision paves the way for the utilization of abandoned industrial infrastructure located across the country, remnants of the economic crisis.
The same logic is reflected in the evaluation criteria. In cases of the reactivation of industrial facilities, the owner’s intention to sell or lease is now sufficient for the availability of the site to be rated positively. Conversely, for all other cases, a title deed or an active lease agreement is still required.
At the same time, the scope for financing through leasing is being expanded. Eligible expenses now include finance lease payments for new mechanical equipment, provided that the contract provides for the transfer of ownership to the investor upon its expiration.
Furthermore, according to the decision, when the final audit is conducted by a certified public accountant or an auditing firm, the relevant report must be submitted within six months of the submission of the audit request. Otherwise, eligibility is automatically revoked, and the amounts paid are recovered with interest.
The obligations of the entities also become stricter after the completion of the works. The application for certification of completion and commencement of production must be submitted within four months of the expiration of the approved deadline. If the deadline passes without an application, the project is considered uncompleted and loses its right to funding.
Certification of production operations, in addition to the completion of the physical and financial scope of the project, is also linked to the issuance of all operating permits, the creation of at least 50% of the approved new jobs, and documentation of the unit’s operation through records of raw material purchases and sales of products or services.
The tax exemption becomes effective after certification of the implementation of 50% or 65% of the approved budget, while the competent authorities are required to issue the relevant decisions within four months.
A detailed framework for calculating operating cash flow (OCF) is also introduced, with a positive rating for companies that generate positive cash flow from their core business activities. In fact, the calculation method is fully standardized through a specific template that must be used during the evaluation.