New decisions for the recovery of Covid subsidies from catering businesses have been published in Diavgeia, as the Greek government seeks the return of funds that were granted through the NSRF and were not utilized according to the program’s terms. The audits revealed violations in the use of working capital intended for business restart after the pandemic.
NSRF 2014-2020 completion and pending issues
The process is part of efforts to close pending issues of the NSRF 2014-2020, which is being formally completed. The Greek government must certify all expenses incurred by the end of the year. In this context, a multitude of compliance decisions based on audit findings are expected.
Recent decisions concern the action “Working capital subsidy to catering businesses for raw material procurement,” with a budget of 330 million euros. The program targeted small, medium and larger enterprises, providing non-repayable, unseizable and tax-free grants.
Terms and conditions of Covid subsidies
The businesses, according to Kathimerini newspaper, received working capital for purchasing materials and raw materials during the first two to three months of restart. A basic prerequisite was the complete utilization of the capital within 2021, with proof through periodic VAT declarations and declared expenses.
When 2022 declarations did not confirm proper use or showed differences between received and declared amounts, recovery of the relevant amount as unduly paid was provided for.
Amounts and repayment procedures
The amounts in recent decisions range mainly between 550 and 4,500 euros. According to information from the Ministry of National Economy and Finance, the program is considered successful and the total repayment amount is not expected to be significant.
The decisions are signed by the Secretary General for Management of Sectoral Programs NSRF, Cohesion Fund and ETC, Vasilis Siadimas. Entrepreneurs have been informed about the possibility of voluntary repayment of the subsidy with interest.
Consequences of non-compliance
In case of non-voluntary repayment, the prescribed procedures will be applied according to the joint ministerial decision on financial corrections. Interest is calculated from the date of payment of the aid amount. If the amount is not returned voluntarily, its collection will be pursued based on the provisions of the Public Revenue Collection Code.
