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