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1

Global Capital Forum I

Marios T. Kyriacou

3 February 2014

2© 2014 KPMG Certified Auditors AE, a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  All rights reserved.  Printed in Greece

Policy Drivers for Greece’s Investment Landscape

Do we want (foreign) investment?

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Policy Drivers for Greece’s Investment Landscape

We assume YES!

So let’s get serious about it!

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Foreign investment

International (and also local) funds

?

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Policy Drivers for Greece’s Investment Landscape

Country Risk

Stable legislation

Ease of doing business

Adequate return on investment

Recognize what the investor considers,

which is:

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Policy Drivers for Greece’s Investment Landscape

Recognize where we are,which is:

Technically bankrupt Country – kept alive by foreign funding

Lack of liquidity

Complex Public Administration – lack of continuity

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Policy Drivers for Greece’s Investment Landscape

Therefore we should approach it in

two stages:

Short Term

Long term

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Short term actions: create and nurture appealing environment

Generates positive

investment and business climate

Identify existing companies with

potential – provide financial and

managerial support

Examine current funding programs

(e.g. Jeremie, ESPA) and create a new

unified funding agency

Use the new funding agency to ensure viability of qualifying existing

companies

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Long term

Establish cooperative

public administration

Seek ways to overcome

country risk

Find ways to compensate for country risk i.e. continue demonstrating determination to move on reforms – increase pace of change, competitive incentive legislation

Break with the past and write laws in practical and clear language with a view to helping business

Transparency – no surprises or hidden costs i.e. establish a committee with the power to interpret legislation and provide binding advance rulings

Intra-state cooperation

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Attracting foreign investment: become more competitive

Offset weak country risk position by

comparative advantage vis-à-vis competition

Examine investment

incentive laws in competing

countries

Introduce an investment law with incentives that are better than those of

the competing countries

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Finally a PLAN for Greece

Prepare Greece’s architectural / business plan

Study and determine ways to achieve desired role

Prepare the action plan (business plan)

Prepare the strategic plan i.e. gateway center for IT

development, tourism, agriculture etc. Align educational system

Determine desired role for Greece in South East Europe, in EU and Globally

Thank you

Marios T. Kyriacou

Senior Partner

KPMG Certified Auditors ΑΕ3, Stratigou Tombra Str Aghia Paraskevi 153 42 Athens

Τ. +30 210 60 62 113

marioskyriacou@kpmg.grkpmg.com/gr

© 2014 KPMG Certified Auditors AE, a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  All rights reserved.  Printed in Greece.

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