1

HELLENIC CENTRE FORINVESTMENT

GREECE: THE NATURAL LINK FOR

INVESTMENT TO SOUTHEAST EUROPE

Haris IssaiasGeneral Manager

New York October 2000

2Total population 267 millionTotal population 267 million

A 1½ hour flight from the north of Greece takes you to:A 1½ hour flight from the north of Greece takes you to:

52m

4m

5m

0,6m

4,5m

11m

2,1m

9m

62m57m

23m

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WHY GREECE

• International business confidence

• Massive Infrastructure Program

• Olympic Games 2004

• Investment Incentives

• Human Resources an exceptional asset

• ELKE

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International business confidence-Improvement in macro-economic variables

• GDP growth rate

2.0% in 1994 to 3.5% 1999

and 3.8% 2000 (projected)

• Inflation

10.9% in 1994 to 2.6% in 1999

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International business confidence Improvement in macro-economic variables

• Interest rates on 12 month treasury bills

17.5% in 1994 to 5.6% October 2000

• Government Deficit

11% in 1994 to 1.5% (of GDP) in 1999

• Total investment growth

-2.8% in 1994 to 11% 1999

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Infrastructure

• New Athens International Airport - $ 2.2 bn (operative March 2001)

• Patras -Athens-Thessaloniki motorway ($2bn) South -North Greece

• Egnatia motorway(East-West Greece) is the link between the EU and the Balkans

• Total length 680 km

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Infrastructure

• New Athens metro network (March 2000)

• Athens ring-road (Spata-Elefsina)

• EU Third Community Support Framework Budget: 48bn EURO

• Hellenic National Telecommunications Organisation network is fully digitalised

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Investment Incentives

• Cash grants from 15% to 45% of total investment cost and interest rate subsidies from 15% to 45% of the long-term loan

or

• Tax allowances on profit from 40% to 100%

• Incentives vary according to location sector employment created

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Investment Laweligible undertakings• Construction-extension of buildings

• Purchase and installation of new machinery and other mechanical and technical production equipment (incl. computerisation)

• Construction of new storage areas

• Purchase of new means of transport for the movement of materials and workers

• Expenditure of transfer for Know-How, licensing

• Engineering expenditure

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Investment Opportunities by sector• Primary sector

Mining (bauxite, bentonite, perlite, gold)

• Secondary sector Food processing Specialty chemicals Information technology software Energy

• Tertiary sector (services)Tourism (Conf. & Exhibition centers, agrotourism, marinas)Telecommunications (50% of the population owns cellulars)Health care and management

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Human Resources an exceptional asset

• 25% of the Greek labor force has a university degree

• 94% of Greek managers have graduate degrees, 54% post graduates

• 45% of Greek managers speak a foreign language

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ELKE• Promotes direct investment (foreign and local) into

Greece

• Administers applications for cash grants for projects exceeding GRD 3 billion (approx. $ 8m) or GRD 1 billion ($ 2.5m) and at least 50% of equity is in foreign capital

• Supports investment projects at implementation stage

• Facilitates the co-operation between Greek and foreign business interests in the region

• May act as advisor to the Government on changes to the legal and regulatory framework regarding investment

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OTHER ADVANTAGES• Low labor costs.

(the 2nd lowest in EU)

• Low marginal effective tax rate.

• Comparatively low cost of living.

• Enhanced life-style.

• R& D support through acknowledged universities & academic institutes

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The regional market (Balkans excl. Greece)

• Total consumer population-

131 million

• Total GDP - $ 328 bn

• Average GDP per capita- $ 2,504.00

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Greece’s role in the region

• Strategic objective to play a vital role for the region.

• Greece is the point of political and economic stability in the region.

• Greece is the only European Union(EU) member state in the region.

• Member of all Western defence structures.

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Strategic partner

• Greek government actively promoting Greek economic interests and combined Greek and foreign interests

• Greek fund for the region: $ 500 m

• Longstanding ties combined with practical understanding gives Greek business a leading edge

• Partnerships with Greek business in the form of joint-ventures or other agreements

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More than 2500 companies in the sectors of:

• Pharmaceutical

• Telecommunications

• Tobacco

• Clothing

• Insurance

• Info-Technology

• Agribusiness

• Mining

• Paper packaging

• Healthcare

Greek business interests in the region

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ALBANIA BULGARIA FYROM ROMANIA FR of YUGONo of largeCo’s

200 450 More150

500 150

Ranking 2nd 10% total 1st 5th 1st

InvestedCapital

100 348 327 970 1.130

Banks:National

v (3) v (3) v v (3) v

ALPHA v v v v vPiraeus, Commercial,Agricultural andEurobank

Greek business interests in the region