Background information

The Export Credit Insurance Organisation (ECIO - ΟΑΕΠ) insures, against commercial and political risks of non-payment, the export credits granted by Greek exporters to foreign buyers who buy Greek products, services, or even projects. ECIO also insures, against political risks, the investments undertaken abroad by Greek entrepreneurs. During the COVID-19 pandemic the greek government announced that Greek exporters can secure the coverage of their invoices at 100% of their value to all customers from the Member States of the EU, and also those from the UK, USA, Canada, Japan, Australia, New Zealand, Switzerland, Norway, and Iceland through ECIO.

By virtue of Law 4918/31.03.2022 ECIO is transformed, and the Export Credit Greece S.A. is established with one of the very important parameters to be its new enlarged portfolio offering insurance and financing solutions, regardless of the size of the company - including SMEs.

Content of measure

The Export Credit Insurance Organisation (ECIO) established by L.1796/1988, is an autonomous legal entity in private law, a non-profit organisation, supervised by the Ministry of Foreign Affairs, under the supervision of the General Secretariat for International Economic Relations & Openness, while its state guarantee capital amounts to  €1.47 billion as of June 2020.

The ECIO implements the following range of five insurance programmes:

1. Short-term export credit insurance schemes: under these schemes, short-term export credits (up to two years) can be insured against both commercial and political risks.
2. Medium-to-long-term export credit insurance schemes: medium-term (two to five years) or long-term export credits (more than five years) can be insured against commercial and political risks.
3. Construction works insurance schemes: construction works by Greek companies abroad are covered in the case of non-payment by public- and private-sector debtors in foreign countries.
4. Buyer’s credit insurance schemes: in contrast with the other schemes,ECIO insures credits provided by banks (whether Greek or foreign, with branches in Greece) to foreign importers so that they can purchase Greek products.
5. Foreign investment insurance schemes: foreign investment insurance schemes cover non-commercial political risks associated with force majeure (e.g. war), political decisions and measures by the host country of the investment (e.g. nationalisations, expropriations), with bans on the transfer of foreign exchange, and with major changes to the legal status of protection of foreign investments, so that the investment is no longer viable.

During the COVID-19 pandemic the Greek government announced that Greek exporters can secure the coverage of their invoices at 100% of their value to all customers from the Member States of the EU, and also those from the UK, USA, Canada, Japan, Australia, New Zealand, Switzerland, Norway, and Iceland through ECIO. This, approved by the Commission, as part of state aid to affected businesses, includes public short-term export credit insurance for all countries, without each Member State having to prove that the respective country is temporarily 'non-marketable'. Countries in a state of bankruptcy, at war, or affected by force majeure are classified as countries with 'non-marketable risks'. Therefore, any export to the above countries can have a public guarantee, as long as the exporter submits a relevant request to the 'state insurer' (in the case of Greece, the ECIO) to be included in the short-term insurance schemes. It is noted that ECIO already has a short-term insurance scheme. Private insurance companies can also provide short-term insurance of export credits guaranteed by the government if decisions are taken to provide state guarantees to private institutions. Under the interim framework, the measure will be in effect until 31 December 2020; however, the European Commission will assess whether to extend the temporary exemption three months before the end of 2020.

In 2022, by virtue of Law 4918/31.03.2022 ECIO is transformed, and the Export Credit Greece S.A. is established. Under this Law, one of the very important parameters is the new enlarged portfolio of the Company which offers insurance and financing solutions regardless of the size of the company - including SMEs - under conditions such as, for example, their digital transformation, etc.- as the country's export sector consists to a large extent, roughly 95%, of SMEs or micro-enterprises that face difficulties in accessing the financial system, which is often an obstacle to the development of the country's economy. As such, the 594/21.02.2024 Amendment on the Joint Decision of the Ministers of Finance and State 3345/02.06.2022 "Terms and regulations regarding the Action "Digital Transformation of Small and Medium Enterprises" as introduced in Law 4918/2022 "Conversion of the Export Credit Insurance Agency (ECA)" into a Joint Stock Company with the title "Hellenic Export Credit Insurance Corporation" broadens the scope of the aid and the beneficiaries (under the Digital Transformation programme), as well as adds new Activity Code Numbers (KAD) for tax purposes. This broadening in SMEs beneficiaries will, directly affect the corresponding categories of potential SMEs beneficiaries in the Company's funding programmes.

Use of measure

As of 2020, ECIO's value amounts to €1.47 billion; this includes its state guarantee capital.

According to ECIO's management, the programmes are not only an excellent combination of insurance and financing ensuring export credits, but also a solution to the vast problem of liquidity faced by Greek enterprises. On the opposite, according to ECIO's management, the programmes while in operation for several years have not reached the public, resulting in limited disclosure of the organisation's role and work. Additionally, there is still need for attracting new exporters.

The 594/21.02.2024 amendment on the Joint Decision of the Ministers of Finance and State 3345/02.06.2022 "Terms and regulations regarding the Action "Digital Transformation of Small and Medium Enterprises", as introduced in Law 4918/2022 "Conversion of the Export Credit Insurance Agency (ECA)" into a Joint Stock Company with the title "Hellenic Export Credit Insurance Corporation" broadens the scope of the aid and the beneficiaries (under the Digital Transformation programme), as well as adds new Activity Code Numbers (KAD) for tax purposes. This broadening in SMEs beneficiaries will, directly affect the corresponding categories of potential SMEs beneficiaries in the Company's funding programmes.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	SMEs Larger corporations Importing/Exporting companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	European Funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

• 31 March 2022: Law 4918/2022: Conversion of the Export Credit Insurance Organization into a Limited Company, ratification of its Statute and other provisions (www.e-nomothesia.gr)
• 31 March 2022: Μετατροπή του Οργανισµού Ασφάλισης Εξαγωγικών Πιστώσεων (Ο.Α.Ε.Π.) σε Ανώνυµη Εταιρεία (www.hellenicparliament.gr)
• 06 June 2022: Joint Ministerial Decision 3345/2022 "Digital Transformation SMEs" (www.taxheaven.gr)
• 21 February 2024: Joint Ministerial Decision 594/21.02.2024 "Digital transformation of SMEs - Amendment of 3345/2022" (www.taxheaven.gr)