Greece was placed back on the list of "marketable risk" countries for short-term export credit insurance by decision of the European Commission on Tuesday, following the successful completion of its fiscal adjustment program in August 2018 and the continuing implementation of reforms.
The decision, to be activated on January 1, 2020, will mean that "short-term export credit risks towards Greece will be considered as marketable to be covered by private insurers," the European Commission said in an announcement.
Greece was removed from the list in 2013, the Commission said, and "the most recent amendment [prolonging the decision] expires at the end of 2019."
The inclusion of Greece back on the list was taken after consultation with EU member states, private credit insurers and other parties to submit comments, the Commission explained, adding that the decision "is another indication of Greece's continued normalisation and builds on the progress that has been made since the conclusion of the programme."
Foreign ministry welcomes decision
Commenting on the decision, the Greek Foreign Affairs Ministry said it gives a strong message of trust in the Greek economy and will have positive repercussions on the real economy.
The EU's decision will also create for Greek companies equal terms with their Europen counterparts in the critical field of transactions abroad, and signals the recovery of credibility by the Greek economy,it also noted.
In addition, the ministry said that leading Greek economic entities in Greece - including the Hellenic Federation of Enterprises (SEV), exports associations, and the Bank of Greece - supported the lifting of the obstacle. At EU level, the proposal was supported by the Deputy FM and Secretary General for Economic Diplomacy and Extroversion Costas Fragogiannis and Grigoris Dimitriadis, respectively, in collaboration with the Permanent Greek Mission in Bruseels.