Gek Terna - Domestic investments with added-value and investors with "character"

Domestic investments with added-value and investors with "character"

02-08-2022

"The active participation of Greek businesses in large investments, those that constitute a bet or a challenge for the country, is the required condition for the systematic development of the Greek economy ensuring at the same time a substantial social dividend", Mr. George Peristeris emphasized in his article at Kathimerini's CEO's 2022 special edition.

The international energy crisis, the high inflationary pressures and the increase in cost of money, create an environment full of challenges for Greek businesses but also for the domestic economy. It is common thing when the outlook becomes less favourable to see the business activity slowing down and investors turning even more conservative when it comes to their investment decisions.

Economic growth, however, is not possible without large-scale investments. But it is not only the size or the number of investments that contribute to economic prosperity. It is primarily the quality of the investments, but also the "character" or the type of investors involved.

Value – and not just profit – is created by those investments that can diffuse their benefits throughout the economy and society, i.e. those which have a high percentage of domestic added value. These are front-loaded investments of forward-looking nature with a long-term perspective and not opportunistic ones. Investments that reflect a commitment greater than the one associated with the placement of funds.

Goal the continuous investment flow

In the easy tasks, everyone rushes to come in and join the game. Foreign investors are of course welcome, with the advantages, but also the disadvantages of the capital they bring in. Such capital can choose to fly away any time, because quite simply it has always somewhere else to go. However, if what we want to achieve continuous investment flows to Greece, then the involvement of Greek companies is absolutely necessary. The active participation of Greek businesses in large investments, those that constitute a "bet" or a challenge for the country, is the required condition for the systematic development of the Greek economy ensuring at the same time a substantial social dividend. Among other things this is so for a particularly important reason: It is the Greek companies that "put their backs" when difficulties arise in large investments and thus ensure the continuous investment flow but also the smooth implementation of such investments.

Now a recent proof of how we, at GEK TERNA Group, perceive our role as a Greek company which constantly wishes to support our country, is the following fact: in an extremely difficult and critical moment for the project called “INTEGRATED RESORT COMPLEX ELLINIKOU”, we decided to boost our support by undertaking the entire investment by 100%, while initially our participation was 35% against 65% of the foreign investor in the joint venture at the time. If at that critical moment when the foreign investor decided to withdraw from the project, we had not come forward, an investment that exceeds EUR 1 billion and has a big multiplier in terms of value for the Greek economy would have been abandoned.
The same would have happened in the past with the modern highway projects or some critical energy investments.

Investment patriotism

The country, the Greek companies, GEK TERNA Group which has been systematically investing in Greece for several decades, we all know how to cope with adverse conditions.

In the past I have used the term "investment patriotism" to express in two words the self-evident: that for us who live and breathe here, our survival and development are perfectly aligned with the progress and prosperity of our homeland.

George Peristeris, Chairman and CEO, GEK TERNA Group

Republished from Kathimerini's CEOs 2022 special edition