Greek Importers Regain Foreign Trust



car_importsDuring the last years, the outbreak of the financial crisis in Greece and the risk of default, caused foreign suppliers as well as multinational companies to lose trust in their Greek partners.

Greek importers were reporting that the situation has always been difficult but it grew even worse with the crisis. The foreign suppliers were very cautious, they didn’t offer any credit and they were demanding to be paid up front, before the loading and forwarding of the goods. The risk of Greece’s exit from the euro zone, made foreign companies worried about whether they would be paid in euros or in drachmas. Consequently, they were demanding high guarantees in their contracts with Greek importers. Moreover, having lost trust in Greek banks, they didn’t accept letters of guarantee unless issued by banks abroad, with a top credit rating.

However, their attitude has changed over the last year. Greek importers are reporting better relations with their foreign suppliers or multinational companies thanks to the restoration of Greece’s image abroad.

The risk of a default has minimized and many sectors in Greece have started to regain the trust of foreign companies. According to Joseph Sinigalias, president of the Association of Electrical Appliances Manufacturers and Importers, “Foreign companies are clearly still worried, but the atmosphere is calmer.”


2 COMMENTS

  1. At the very least it indicates some restoration of faith and a good amount of financial backing by the German government owned-development bank KfW.
    This is just for public consumption and more press releases will follow indicating Greece’s arm is being twisted to purchase high priced German arms after the Troika forces the closure of domestic arms manufacturers. Expect the traditional cash filled envelope form of contracting with corrupt Ministers and government officials will return.