Dodecanese MP Manos Konsolas submitted a parliamentary proposal advocating for interest-free microloans to very small and individual businesses on South Aegean islands with populations under 3,000. His initiative led to a positive development: the Just Development Transition Fund will now be extended to islands with up to 3,100 residents, supporting both existing and new SMEs. This move aims to reduce the investment gap in remote island areas, boost employment, and strengthen local economies to encourage residents, especially young people, to remain on the islands.
The loan schemes include:
- Interest-free loans up to €500,000 with 50% interest-free financing, a 3-year interest subsidy, up to 10 years repayment, and a 12-month grace period.
- Larger investment loans up to €16.5 million with 80% loan guarantees, interest subsidies, up to 12 years repayment, and a 24-month grace period.
