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Elsevier, Procedia Economics and Finance, (14), p. 137-146, 2014

DOI: 10.1016/s2212-5671(14)00695-9

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The Lean Years: Private Investment in the Greek Rural Areas

Journal article published in 2014 by Fotis Chatzitheodoridis ORCID, Achilleas Kontogeorgos, Efstratios Loizou
This paper is made freely available by the publisher.
This paper is made freely available by the publisher.

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Abstract

From 2008 until today, the Greek economy is facing a deep recession. The consequences of the financial crisis and the implementation of harsh fiscal measures adopted are the shrinking of incomes, the reduction of domestic demand and consumption and the massive increase of unemployment. At the same time, a significant reduction of the productive activity and a decrease in state and enterprise investments took place; all the above in a period when the main challenge is the country's recovery and financial growth. The only way out of the lack of liquidity are EU financial resources, the utilization of the National Strategic Reference Framework (NSRF) 2007-2013 and the resources following the programming period 2014-2020. In this context, despite the relatively high interest they present, private investments in primary sector and in rural areas, are facing significant problems. A research conducted with structured questionnaire to investors enrolled to investment support programmes in rural areas, had as a key goal to depict the potential completion of those investments. From the results of this research it is demonstrated that a significant percentage of approved investments are experiencing severe liquidity problems and in many cases there is a failure to complete them.