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Greece Announces EUR1.3 Billion Package For SMEs, Self-Employed

ATHENS -(Dow Jones)- The Greek government Wednesday announced a EUR1billion package to support Greece's small- and medium-sized enterprises, the latest in a series of measures to boost the many family businesses that dominate the Greek economy.

The program includes EUR1.05 billion in financing for SMEs, mainly in the transport, tourism, commerce and services sectors, Finance Minister Yannis Papathanassiou said at a news conference.

At least 17,000 businesses would benefit from the measures, he said.

He said the government would also soon announce another EUR250 million package to support the self-employed.

Greece's business sector is dominated by more than 300,000 small businesses which employ some 1.5 million people, roughly a third of the entire Greek workforce. More than 95% of Greek business are characterized as small- and medium-sized, one of the highest proportions in the European Union.

Many of those businesses have been hit by a slowdown in consumer spending, while bank lending has dried up as a result of the financial crisis.

In the past six months, the European Investment Bank, private lenders Piraeus Bank SA (TPEIR.AT), EFG Eurobank Ergasias SA (EUROB.AT), Alpha Bank AE ( ALPHA.AT) have also announced various loan programs for SMEs.

Greece's development ministry also has its own separate program, known by the acronym TEMPE, to support SMEs.

Finance Ministry Web site: www.mnec.gr

-By Alkman Granitsas, Dow Jones Newswires; +30 210 331 2881; alkman.granitsas@ dowjones.com

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