Reuters news agency reports that the German government is planning to stop credit guarantees for exports to Greece at the end of the year as private insurers have signaled readiness to cover the risks of non-payment loans themselves.

Germany started offering Hermes guarantees for businesses exporting to Greece during the peak of the euro area’s financial crisis in April, 2012. At that time, there were fears for a Greek exit from the currency bloc. Guarantees were a way to offer security to exporters and banks at a time when there were risks of non-payment.
Berlin has provided guarantees worth around 560 million euros for short-term bills owed by Greeks to German firms – 200 exporters and 800 Greek firms – since April 2012.

Now that Greece is exiting the crisis, Germany is planning to end these guarantees that are normally reserved for countries outside the EU28.

A document seen by Reuters refers to statements by German Economy and Energy Minister Sigmar Gabriel that says: “It is a good sign that the private insurance industry is prepared once again to cover Greek risks. Therefore it is logical and right for the German government to pull back.”