"Israeli government has no credit exposure to Greece"

Greek flag  photo: Bloomberg
Greek flag photo: Bloomberg

Greece is in 28th place among Israel's trading partners.

"The Israeli government has no credit exposure to Greece, and is expected to suffer no direct damage following the halt in European Central Bank aid to Greek banks," Israel Foreign Trade Risks Insurance Company (ASHRA) CEO Tzahi Malah said today. At the same time, Malah warned, "Greece's bankruptcy will have consequences for the global economy, and is liable to harm Israeli exports indirectly, while increasing the risk in global markets."

Malah added, "ASHRA has assigned Greece the highest credit risk rating - 7 - for several years. Following further worsening in the country, however, at this stage, we are calling Greece unrated, and recommending against insuring export deals to it until new information is obtained enabling us to raise its rating. If Greece defaults, ASHRA will continue supporting Israeli exports, and will also consider insuring credit risks in export deals with countries liable to be affected by the crisis in Greece, while taking the necessary precautionary steps."

ASHRA insures medium and long-term export deals, and provides insurance coverage for political risks in the target countries, and for commercial risks. Despite ASHRA's soothing message today that Israel has no credit exposure to Greece, it is not clear whether any Israeli companies are exposed to the Greek market in short-term deals, i.e. less than a year. According to the Israel Export and International Cooperation Institute, the value of bilateral trade between Israel and Greece totaled $677 million in 2014, more than 50% up on the $455 million total in 2013. Bilateral trade totaled $257 million in January-June 2015, down 4%, compared with the corresponding period last year. Greece was in 28th place among Israel's trading partners in 2014.

Israel's exports to Greece totaled $448 million in 2014, 77% more than the $253 million exported in 2013. Israeli exports dropped 4% to $170 million in January-May 2015, compared with the corresponding period in 2014. Export Institute figures show that Israel exports mainly chemicals and refined oil products, which accounted for 65% of all exports to Greece.

Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Greek flag  photo: Bloomberg
Greek flag photo: Bloomberg
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