Financial instruments are a set of financing mechanisms that rely not on direct subsidies, but on loan guarantees, co-financed loans, interest rate subsidies, and equity participation. The Hellenic Development Bank (HDB) is the central management body for these tools.
The DeLFI Guarantee Fund (Development Law Financial Instrument) provides guarantees of 70% of capital for SMEs or 80% for newly established small businesses, combined with a two-year interest rate subsidy of up to 3%. Digitalization Co-Financing Loans offer 40% of capital interest-free and partial interest subsidization for the remaining 60%.
HDB has deployed financial instruments worth €2.5 billion to the Greek market, transforming the business financing model. Additional tools include the Just Transition Fund, the Innovation Fund, and guarantee instruments through the European Investment Fund (EIF).
ARROW Consulting acts as an intermediary, helping businesses select the right tool and submit applications through partner banks.
Who is this for
Financial instruments target SMEs needing liquidity or investment financing with favorable terms. Particularly suitable for businesses that do not meet direct subsidy criteria, startups, and businesses in growth phases.
Key Benefits
Loan Guarantees
Guarantees of 70-80% of capital through HDB, drastically reducing collateral required by banks.
Interest Rate Subsidy
Two-year interest rate subsidy of up to 3%, significantly reducing the financial cost of your investment.
Interest-Free Digitalization Loans
Digitalization loans with 40% of capital completely interest-free, ideal for technological modernization.
Easy Access to Financing
HDB assumes part of the business risk, facilitating financing through banks.
Innovation Fund
Special guarantee tools for high-tech innovative projects with enhanced guarantees.
Multiple Financing Tools
Wide range of tools: guarantees, microloans, venture capital, just transition loans, and export credits.
How It Works
Financing Needs Analysis
We assess your financing needs and identify the right tools: guarantees, loans, or equity participations.
Tool & Bank Selection
We recommend the optimal tool and connect you with the appropriate partner banks.
Preparation & Application Submission
We prepare the necessary documents, business plans, and financial statements for the application.
Disbursement & Monitoring
We support the disbursement process and monitor your obligations throughout the loan period.
Financial Instruments FAQ
HDB is the national body that designs and manages financial instruments for SMEs. It operates as an intermediary between EU/state and banks, assuming part of the business risk.
DeLFI provides guarantees of 70% (or 80% for startups) on loan capital obtained under Development Law 4887/2022, with a two-year interest rate subsidy.
Most commercial banks in Greece partner with HDB: NBG, Piraeus, Eurobank, Alpha Bank, and others. Tool availability may vary by bank.
Subsidies are non-repayable funding, while financial instruments include loans (repayable) with favorable terms. Instruments have faster approval and less competition.
In many cases yes, provided state aid accumulation rules are respected. For example, you can finance your ESPA co-investment through an HDB loan. ARROW Consulting designs optimal combinations.
Yes, HDB offers specialized tools for startups: 80% guarantees, microloans, venture capital through HDBI, and tools connecting with private investors.
Find the Right Financing
Contact us for a free analysis of your financing needs and identification of the right instruments.