GREECE Law and Practice Contributed by: Ioannis Charalampopoulos, Daphne Kasimati, Afroditi Kazani and Ioanna Exarchou, Machas & Partners
7.5 Risk Areas for Lenders When a borrower, security provider, or guarantor becomes insolvent in Greece, lenders may face the following risks. Automatic Stay on Enforcement Upon the declaration of insolvency, a temporary stay may be imposed on creditors’ enforcement actions, which can delay lenders from realising their security. While secured creditors maintain priority, their ability to immediately enforce security may be limited, par- ticularly during restructuring efforts. Claw-Back of Transactions Lenders face the risk of claw-back actions, which can nullify transactions made in the period leading up to the insolvency declaration. This can include prefer- ential payments or transfers of assets that occurred within a “suspect period” prior to insolvency. Challenges to Guarantees Guarantors may attempt to escape liability if the guar- antee is not structured to cover amendments to the loan or changes in the financial status of the borrow- ing company. Decline in the Asset Value Delays in the liquidation process or deteriorating market conditions may reduce the value of the assets securing the credit, further impacting the recovery for secured creditors. If liquidation is not completed with- in 18 months, piecemeal liquidation might be forced, which can yield lower returns. The project finance activity has remained robust through 2025, primarily driven by the continued implementation of EU funding programs, including the Recovery and Resilience Facility (RRF), support- ing Greece’s ongoing environmental initiatives, digi- tal transformation, and infrastructure modernisation efforts. The main players sourcing project financing are in the energy industry, followed by transport, tourism, real 8. Project Finance 8.1 Recent Project Finance Activity
estate, telecommunications and digital infrastructure. There are also some project financings used for waste and water management facilities. Recent deals in the energy sector span from modest solar PV installations and wind farms to projects like the installation of submarine cables for the intercon- nection of islands with the IPTO. 8.2 Public-Private Partnership Transactions Projects implemented via PPP structures continue to gain momentum in Greece. Law 3389/2005 is the foundational legal framework for Public-Private Partnerships (PPPs) in Greece, facili- tating collaboration between the public and private sectors in delivering infrastructure projects and public services. The law simplified the previously cumber- some process, contemplating that the PPP projects can be implemented upon approval from the Intermin- isterial PPP Committee. Law 4412/2016 and 4413/2016 govern public pro- curement in Greece, designed to align with EU legisla- tion, cover the procurement of public works, supplies, and services and apply to both public sector agencies and entities active in regulated industries. Significant reforms to Law 4412/2016 were introduced with the enactment of Law 4782/2021, which modern- ised the public procurement processes.. Depending on the specific sector in which the pro- ject is classified, other law might become relevant. For projects with energy assets, Law 3468/2006, as amended, regulates the production of electricity from renewable energy sources (“RES”), Law 4001/2011 on the operation of electricity and natural gas energy markets for the exploration, production and hydrocar- bon transmission networks and Law 4014/2011, as amended, sets out the requirements for the environ- mental licensing of projects. There are no prohibitions or other restrictions on the types of projects that can be executed as PPPs.
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