![The evolution of the Export Credit Insurance Organization into a modern European organization](https://www.ot.gr/wp-content/uploads/2022/03/EFI6225.jpg)
The proposed Bill of the Ministry of Foreign Affairs for the transformation of the Export Credit Insurance Organization (OAEP) into a Hellenic Export Credit Company Societe Anonyme is currently being discussed.
Export Credit Institutions offer financing and insurance to facilitate exporting companies to operate successfully in international markets. The Greek OAEP had major shortcomings in meeting the needs of Greek exporters. After all, its modernization into a modern European organization was a constant request of both the Hellenic Federation of Enterprises-SEV and all the country’s exporters.
Following the successful reorganization of Enterprise Greece, it was time to highlight the importance of export credit insurance, which should be a key factor in strengthening extroverted entrepreneurship and improving the competitiveness of Greek exporting companies. It is no coincidence that in the last 15 years the share of world trade under insurance coverage of export credits has almost doubled (reaching 13% of the value of world trade).
From the placement of SEV in the Standing Committee of National Defense and Foreign Affairs, four critical points concerning the bill emerge, for the further strengthening of exports.
First, it is considered positive that the restructuring of OAEP is based on best European practices and with particular emphasis on the new business model and its products. In order to adapt to the requirements and challenges of an ever-changing external environment, OAEP must be able to simultaneously meet the needs of SMEs, which export smaller quantities, and large players, which cover the largest percentage of exports.
Second, the transformation of the Organization into a Societe Anonyme will improve governance issues. It is important that the Agency will henceforth operate in accordance with the rules of the private economy with the flexibility it offers. This is essential for the modern rules of corporate governance, such as internal control, financial control by external auditors, new procurement regulations, etc. However, the conversion into a SA by itself does not solve management problems. We need a new commercial and administrative logic with market rules, in order for OAEP to meet its needs.
Thirdly, it is considered positive that through the improvement of its organizational structure but also the expansion of its operations, the new OAEP will be able to offer a flexible portfolio of products and financial tools, in order to respond directly to the demands of exporters and its challenges. domestic (such as lack of liquidity) and international markets (such as protectionism and the global trade crisis due to a pandemic). It is important that from now on it will be able to provide guarantee, insurance along with financing (something that is not done now) but also consulting services to export companies. It should also support the investment part.
Finally, a long-standing issue of export companies remains unresolved. It is not included in the draft bill, while it should be, the permanent request for exemption of the contribution 0.60% according to law N128 / 75, for the loans granted by the banks through the program “Extroversion” of OAEP, in combination with the pre-financing of exports for purchase raw and auxiliary materials and packaging materials. It is very important that future programs do not include booking in favor of third parties, without benefit to export companies. In addition, the acceptance of the proposal will give a boost to the turnover of OAEP, will reduce the guarantees of the Greek State to the banks and will provide liquidity at a lower cost.
In order for the country to move forward even faster, continuous and strong export support is required, that is, to maintain the excellent momentum we have in recent years and to strengthen all sectors of the Greek economy. An important dimension in enhancing the competitiveness of extroverted enterprises is the strengthening of state mechanisms that assist in the export process.
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