LONDON: Hellenic Petroleum, Greece's largest refiner, has issued a tender to buy an 80,000 tonne cargo of Russian Urals crude oil for early June delivery, a trading source said, the first in months as its finances improve.
The tender was issued on Friday and closes today. The payment will be on open credit terms, which means that the seller will cover the trade financing for the deal.
Traders said it has been a long time since the refiner last issued a tender. Hellenic held a similar tender in June of last year.
The refiner has been struggling to buy crude and products as the financial crisis in Greece has led international banks to stop dealing with many Greek institutions and accepting their letters of credit, fearing defaults.
Hellenic was forced to rely on an open credit line mainly with Glencore, a major trading company with enough liquidity to take on the risk of non-payment.
The refiner has been finding it easier to buy crude after a financial bailout of Greek banks and after Hellenic was able to refinance 1.2 billion euros in loans.
More traders have started selling to the refiner, including on a cash-and-barter system.
Ratings agency Fitch upgraded Greece's sovereign credit rating by one notch last week to B- from CCC, citing the country's progress in cutting its budget deficit and the receding risk of an exit from the euro zone.
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