With the bill that was voted in favor by the Greek Parliament, which was submitted by the Minister of Foreign Affairs, Nikos Dendias and presented by the Deputy Minister in charge of Economic Diplomacy and Extroversion, Costas Frangogiannis, the Ministry of Foreign Affairshaving the responsibility of the country’s economic diplomacy, carries out an important reform, aiming at the support of the Greek exporter.
According to sources from the Ministry of Foreign Affairs, o Export Credit Insurance Organization is transformed into a societe anonyme (“Hellenic Export Credit Company”), with a new name, a new business model and new products and tools. This is a radical restructuring of the national export credit body by the Ministry of Foreign Affairs, aiming at the real needs of the economy and increasing competitiveness.
The new identity is a product of the agency’s collaboration with its Italian counterpart SACE, which conducted a comprehensive study involving all export links, financial institutions, private insurers and other institutions of the export ecosystem.
After many years of inactivity during which the national agency was devalued, presenting key shortcomings in meeting the needs of Greek exporters, the best practices and best models of European bond organizations that are in line with the map of small and medium enterprises in the country were adopted.
The new company expands the purpose and the object of activity and in particular:
- New trade finance, insurance and financing products. Expanding the product portfolio from an individual insurance product currently offered, to at least ten new products that will include in addition to insurance, guarantees and financing, addressed to export companies and financial institutions involved in international trade.
- Consulting and support services, to the exporting, or potentially exporting companies, with the aim of their business development operating as a one-stop shop for their activity in the international markets.
- Expansion of activity in projects that are of strategic importance to the national economy and are related to extroversion, increased productive activity and employment.
- Synergies with financial institutions, business and export bodies, chambers with European and international financial assistance programs to third countries in the fields related to the promotion of exports and the strengthening of Greek entrepreneurship internationally.
- Strong presence in the international arena and synergies with respective export credit organizations
- Operational arm for the implementation of the national development strategy and foreign trade, helping to fill the funding gap in the execution of projects and exports, while interacting with other extroverts.
What is the Added Value
- Impact Assessment / contribution of the Organization to the Greek economy
Today, OAEP insures approximately € 0.5 billion in export turnover, a percentage of 1.45% of total Greek exports. Through its expanded activities over a period of five years, it is expected that it will have almost five times the coverage of Greek exports, aiming to cover total exports worth ~ € 2.5 billion, which account for almost 6% of total Greek exports.
The new company through its operation with the new business model is estimated that in total over five years it will have supported exports amounting to € 8.7 billion. These exports are estimated to create a product of € 21.6 billion and added value during this period. to GDP amounting to € 8.1 billion, taking into account the effects of the employment required for the realization of these exports.
In addition to the immediate jobs that will be created, the multiplier effects on the employment sector amount to 50,000 indirect jobs on average / year.
- Export support for small and medium-sized enterprises which are excluded from the banking system and the private insurance market.
The country’s export sector consists of a large percentage of small and medium-sized enterprises that have difficulty accessing the financial system, which is sometimes combined with a lack of information and know-how, thus reducing their competitiveness.
It is recalled, finally, that the exporting world that was represented during the passage of the Draft Law in the competent Committee of the Parliament expressed its full support for the modernization of the national export credit body.
The Ministry of Foreign Affairs will continue to maintain open channels of communication with the business community, supporting Greek exports, as well as attracting investments in our country, through Economic Diplomacy.
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