The President of the Heraklion Chamber of Commerce, Mr. Vaggelis Karkanakis, is calling for the intervention of the Deputy Minister of National Economy and Finance, Mr. Nikos Papathanasis, in order to support the recovery of businesses in the wider Arkalochori area, as the measures taken to date have not covered the needs that arose after the devastating 2021 earthquake.
Mr. Karkanakis proposes the creation of a special Recovery Microloan Fund for natural disasters in the Municipality of Minoa Pediada, tailored to the needs of very small enterprises, self-employed professionals, and local producers. As he stresses, the Fundsimilar to the one established for entrepreneurs in Thessalyshould ensure simplified procedures, low financing costs, and an adequate grace period.
Specifically, the President of the Heraklion Chamber of Commerce states in his letter, which is also addressed to the CEO of the Hellenic Development Bank (HDB), Ms. Ismini Papakyriellou:
Honourable Minister,
The Heraklion Chamber of Commerce, within the framework of its institutional role as an advisor to the State on issues of entrepreneurship and regional development, wishes to bring to your attention an issue of major social and economic importance for the Regional Unit of Heraklion, and in particular for the wider area of Arkalochori in the Municipality of Minoa Pediada. Four years after the devastating earthquake of September 2021, Arkalochori and the surrounding communities continue to experience the consequences of a natural disaster with a long-term impact. A significant number of residents still live in temporary accommodation settlements, while critical infrastructure and professional premises have not yet been fully restored. This prolonged situation has a direct impact on social cohesion, as well as on the sustainability of the local economy.
In the period following the earthquake, support interventions were indeed implemented, such as compensation, subsidies, and special relief measures for affected citizens and professionals. However, as emerges from the Chambers ongoing contact with its member businesses, these measures failed to cover the full range of actual needs. Issues such as the speed of implementation, the degree of absorption, and limited access to flexible financial instruments left a significant part of local entrepreneurship without a real opportunity to restart.
The current picture of the local market in Arkalochori remains fragile. Many very small and small enterprises never returned to full operation, while self-employed professionals who depend on local consumption and small-scale economic activity face intense uncertainty, limited liquidity, and a lack of investment prospects. At the same time, the areas primary sectoragriculture and livestock farmingwas severely affected both by direct material damage and by the long-term absence of investment in critical production, storage, and product distribution infrastructure.
In light of the above, and taking into account the constitutionally enshrined principles of equality and proportionality, we consider it reasonable and absolutely necessary for similar financial provision to be made for Arkalochori, equivalent to that established for Thessaly through the Recovery Microloan Fund for Natural Disasters TEPICH III.
This specific financial instrument has proven in practice that it can function as a lever for genuine recovery, providing very small and small enterprises and professionals with working capital loans, with the possibility of combining them with investment expenditures, under particularly favourable terms. Adapting a similar scheme to the needs of the earthquake-affected area of Arkalochori could constitute a critical tool for restarting the local economy, strengthening employment, and restoring social and economic normality.
The Heraklion Chamber of Commerce proposes the creation of a special Recovery Microloan Fund for Natural Disasters for the Municipality of Minoa Pediada, targeted at the needs of very small enterprises, self-employed professionals, and producers in the area, with simplified procedures, low financing costs, and an adequate grace period, so that it responds to the real conditions that continue to prevail.
We are convinced that such an intervention is not merely a measure of economic support, but an act of institutional consistency and a tangible application of the principle of equal treatment of affected regions across the country.
The Heraklion Chamber of Commerce remains at your disposal for any additional information, technical assistance, or cooperation that could contribute to the design and implementation of such a financial instrument.
