ECONOMY

Atradius stops covering new shipments to Greece

Atradius NV, the world?s second-biggest trade credit insurer, stopped covering new shipments of goods to Greece following a similar decision by Euler Hermes SA, the biggest provider.

?While we will not cover supplies to new buyers in Greece, we continue to cover the trade credit risk with regard to selected existing buyers of our customers,? the company said in an e-mailed statement on Friday. The lack of export insurance, which pays companies if a client defaults, raises the prospect that certain goods will no longer reach Greek companies and stores.

Euler Hermes, said this week it will no longer cover new shipments of goods to Greece because of the risks of the nation leaving the euro currency and customers defaulting, while France?s Coface said it?s only doing business with ?the healthiest Greek companies.?

?For those Greek buyers where we see, for example, a high dependency on imports or business with the public sector we are withdrawing or reducing limits,? Atradius said. ?We remain on cover for risks already taken on before withdrawal, or reduction of the credit limit in accordance with the policy conditions.? [Bloomberg]