Hermes Sends a Message

by Andrew Stuttaford

Via the Daily Telegraph:

Greece was dealt a further blow when the world’s biggest trade credit insurer suspended cover for exporters shipping goods to the country.

Euler Hermes, which is majority owned by the German insurer Allianz, is acting on fears that the stricken eurozone member may be forced out of the single currency, limiting the ability of Greek importers to pay their bills.

“Euler Hermes has decided no longer to cover deliveries to Greece for the foreseeable future,” a spokesman said.

The company said existing contracts would be honoured but no new Greek business would be underwritten. The insurer said it would reconsider its decision “as soon as the situation improves.”

The move reflects the widely-held view that Greece is likely to exit the eurozone, after politicians failed to form a coalition government, prompting a second election on June 17…

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