Message #21873

[Psalm 51:17]

Greece needs boosted reform for future funding: EC
30 May 2012, by Stelios Bouras - Athens (MarketWatch)
http://www.marketwatch.com/story/greece-needs-boosted-reform-for-future-funding-ec-2012-05-30

Greece will need to pick up the pace of reforms in order to secure future funding from international creditors, the European Commission said Wednesday.

In a country report on Greece, the commission reiterated that the economy is seen contracting at an annual pace of 4.7% in 2012, with the potential risk for further deterioration, and that the country's medium-term economic performance will depend on the implementation of structural reforms.

"Comprehensive international financial assistance can continue to be provided only if policy implementation improves," the commission said in its report.

"The determination of the Greek authorities to stick to the agreed policies will be tested in the coming months when deficit-reducing measures to close the large gap for 2013-14 need to be identified," it said.

Under the terms of the country's latest €130 billion bailout, Greece must detail in June some €11.5 billion worth of spending cuts to close fiscal gaps in 2013 and 2014.

more

Greece Risks Trade Constraints as Insurers Cut Export Coverage
31 May 2012, by Howard Mustoe and Greg Viscusi (bloomberg)
http://www.bloomberg.com/news/2012-05-30/euler-hermes-suspends-insurance-cover-for-exports-to-greece.html

Euler Hermes SA, the world’s biggest credit insurer, said it will no longer cover new shipments of goods to Greece because of the risks of the nation leaving the euro currency and customers defaulting on payments.

The insurer, a unit of Allianz SE, took the decision because exporting to Greece has become “significantly more risky,” Paris-based Euler Hermes said in an e-mailed statement yesterday.

The insurer is still working under the assumption Greece will remain in the euro zone, it said.

“We will still cover those shipments under way and internal commercial transactions,” spokeswoman Bettina Sattler said by telephone today. Future shipments to the country won’t be covered, she said.

The lack of export insurance, which pays companies if a client defaults, raises the prospect that certain goods will no longer reach Greek companies and stores.

Austria’s OeKB Versicherung AG said on May 29 it will also drop coverage of new shipments to Greece and Coface SA of France said it’s only doing business with “the healthiest Greek companies.”

more