Staikouras: new framework for compensation for natural disasters

It changes the old compensation scheme whereby this grant was - in principle - given at 30% of the estimated damage - after 3 or more years.

“Advance payment 20% of the loss of the affected business is now paid within the first few weeks after the onset of the disaster under the new framework.”

This was reported by the Minister of Finance Mr. Christos Staikouras, speaking at the House Standing Committee on Economic Affairs during the continuation of the processing and examination of the draft law of the Ministry of Finance:

“State aid to enterprises and non-profit organisations for natural disasters, emergency arrangements to support the economy, supplementary state budget and pension arrangements” (4th meeting - second reading).

It should be noted, as the Minister said, “that under the previous scheme, therefore, this grant was given - in principle - at a rate of 30% of the assessed compensation - after 3 or more years.

There were many times when the grant reached the beneficiaries - affected entrepreneurs - even after 5 years.”

At the same time as noted “so far, for the “Janus” that hit, mainly, three (3) regions and areas of twenty-three (23) municipalities, allocated or secured:

- More than €85 million for flood defence and protection projects under concessions through the Ministry of Infrastructure and Transport.

- EUR 41.6 million to municipalities for immediate response to damage and infrastructure and network rehabilitation needs, through the Ministry of Interior from the Public Investment Programme.

- €89.5 million to the regions for the rehabilitation of infrastructure and networks, through the Ministries of Development and Investment and Interior from the Public Investment Programme.

- €23 million to municipalities for immediate response to damage to road networks and infrastructure, from the Ministry of Infrastructure and Transport.

- More than 140 million euros for the construction and rehabilitation of major infrastructure and network projects in the Regional Unit of Karditsa through the Ministry of Infrastructure and Transport from the Public Investment Programme.

- More than €9 million was received by 7,817 businesses from the 4th cycle of the Refundable Advance without a reduction in turnover, but as support due to “Janus”, from the Ministry of Finance.

- EUR 38.1 million in one-off aid to 4,764 businesses, through the Ministry of Infrastructure and Transport from the State Budget Reserve managed by the Ministry of Finance.

- EUR 46.6 million to the primary sector for crop and livestock compensation from ELGA following its financial support from the Ministry of Finance.

- More than €5 million for the rehabilitation of irrigation networks and infrastructure of the TOEBs, so as not to derail production planning, through the Ministry of Rural Development and Food and the Ministry of Interior, with funds from the Ministry of Finance and the Public Investment Programme respectively.

- EUR 16.6 million for compensation for the first needs of households and for construction, through the Ministry of Interior from the State Budget Reserve managed by the Ministry of Finance.

- 27.7 million as one-off aid to 6,217 housing units, through the Ministry of Infrastructure and Transport from the State Budget Reserve managed by the Ministry of Finance.

- 43 million, as an initial estimate, for the provision of housing assistance to natural and legal persons, but also for rent and housing subsidies by the relevant Ministries.

The response to the earthquake-stricken Samos was similar, with the municipalities of Eastern and Western Samos affected, and to a much lesser extent that of Ikaria.

In particular, so far, they have been allocated or committed:

- EUR 10 million to the Region for the restoration of damage to networks, infrastructure and ports from the Public Investment Programme of the Ministry of Development and Investment.

- EUR 7.2 million to the municipalities of Samos and Ikaria for the initial restoration of damage to infrastructure and networks, as well as for the promotion of the demolition of dangerously dilapidated buildings, through the Ministry of Interior from the Public Investment Programme.

- Approximately €1 million to the municipalities of Samos for prefabricated classrooms from the Ministry of Infrastructure and Transport's KTYP and for addressing problems in the water supply network from the Ministry of Maritime Affairs and Insular Policy.

- €2.5 million for compensation for the first needs of households and for construction, through the Ministry of Interior from the State Budget Reserve managed by the Ministry of Finance.

- Approximately €100 million, as an initial estimate, for the provision of housing assistance to natural and legal persons, but also for rent and housing subsidies from the relevant Ministries.

- EUR 1.1 million for the promotion of measures to remove dilapidation of sacred temples and monuments through the Ministry of Culture and Sports from the Public Investment Programme.

As you will have noticed, in both cases I have noted the resources that have been allocated or committed “so far”, and this is because we are not stopping here, but continuing.

We are closely monitoring the process of supporting the areas affected by natural disasters, extending support where necessary and taking initiatives to relieve households and businesses in the difficult times they are experiencing.”

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