Download HELENIC CENTRE FOR INVESTMENT

GREECE:
THE NATURAL LINK FOR
INVESTMENT TO
SOUTHEAST EUROPE
HELLENIC CENTRE FOR
INVESTMENT
Haris Issaias
General Manager
New York October 2000
1
A 1½ hour flight from the north of Greece takes you to:
52m
4,5m
23m
11m
9m
2,1m
57m
62m
4m
0,6m
5m
Total population 267 million
2
WHY GREECE
• International business confidence
• Massive Infrastructure Program
• Olympic Games 2004
• Investment Incentives
• Human Resources an exceptional
asset
• ELKE
3
International business confidenceImprovement 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
4
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
5
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
6
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
7
Investment Incentives
•
Cash grants from 15% to 45% of total
investment cost and interest rate
subsidies from 15% to 45% of the longterm loan
or
•
Tax allowances on profit from 40% to
100%
•
Incentives vary according to
 location
 sector
 employment created
8
Investment Law
eligible 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
9
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
10
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
11
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
12
framework regarding investment
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
13
The regional market (Balkans excl. Greece)
• Total consumer population131 million
• Total GDP - $ 328 bn
• Average GDP per capita- $ 2,504.00
14
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.
15
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
16
Greek business interests in the region
More than 2500 companies in the sectors of:
• Pharmaceutical
• Info-Technology
• Telecommunications • Agribusiness
• Mining
• Tobacco
• Clothing
• Paper packaging
• Insurance
• Healthcare
17
Greek business interests in the region
ALBANIA BULGARIA
FYROM ROMANIA FR of YUGO
No of large
200
450
More
500
150
Co’s
150
Ranking
2nd
10% total
1st
5th
1st
Invested
100
348
327
970
1.130
Capital
Banks:
v (3)
v (3)
v
v (3)
v
National
ALPHA
v
v
v
v
v
Piraeus, Commercial,
Agricultural and
Eurobank
18