The German government will stop issuing credit guarantees for exports to Greece at the end of the year because private insurers have signalled they are ready to cover the risks of non-payment themselves. Germany began offering so-called Hermes guarantees for businesses exporting to Greece at the height of the euro zone financial crisis in April 2012, when fears of a Greek exit from the currency bloc were rife.
The guarantees offer security to exporters and banks that do business in markets where there is a risk of non-payment.
An economy ministry document seen by Reuters on Sunday showed Germany planned to end the guarantees, which under European Union rules are normally reserved for countries outside the 28-nation bloc, from December 31.
In the document, Economy and Energy Minister Sigmar Gabriel said: "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."
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