Download Greece: an overview

Greece: an overview
The RBS group has been present in Greece since 1974.
Our Global Transaction Services (GTS) business offers
clients cash and liquidity management, trade and supply
chain finance, and commercial cards. Our services are
delivered through a dedicated team of local banking
professionals, who are supported by regional teams and
experts from across our global network.
Capital
So, however large or small your operations in Greece, we
can offer the services and support to help you succeed.
Economic overview
Geography
Thessaloniki
GREECE
Patras
Corfu
Volos
Athens
Piraeus
Rhodes
Iraklion
Athens.
Major ports
Piraeus, Thessaloniki, Corfu, Iraklion, Patras, Rhodes, Volos.
Language
Greek.
Following a sustained period of economic growth, stimulated
in part by infrastructure spending on the Athens Olympic
Games in 2004, the Greek economy followed many other
European countries into recession in 2009, contracting by
a further 4.8% in 2010 2. As a member of the euro, Greece
has frequently failed to meet the EU’s budget deficit target.
As well as a very high budget deficit, unemployment and
inflation are both running well above the Eurozone average 2.
The government has sought to bring down the deficit with a
programme of austerity measures, including cutting
government spending, privatising public utilities, decreasing
tax evasion and reforming the country’s costly health and
pensions systems. Uncertainty remains however as to
whether the government can see these reforms through in
the face of public opposition.
A subsequent loss of confidence by international investors
has led to a downgrading of Greece’s credit rating, further
exacerbating the crisis. The IMF and Eurozone countries
have stepped in to provide loans but further support is
dependent on the government continuing their programme
of reforms. The OECD forecasts that, subject to structural
reforms continuing, growing export demand and improving
competitiveness will lift Greece out of recession in 2012 3.
Economic indicators
2009
Greece is a mountainous southern European country
bordering Albania, Macedonia, Bulgaria, Turkey and the
Mediterranean and Ionian Seas. The Greek Islands account
for 19% of the country’s land area 1. The majority of Greeks
live in the greater Athens area and Thessaloniki in the
North 1. Around 50% of Greek industry is based in and
around Athens 1. Greece is a major tourist destination and
the population almost doubles in the main May to
September season 1.
2
UKTI: Doing Business in Greece
CIA World Factbook
% change
Population
10,751,212
10,760,136
0.083
GDP
US$333.2 billion
US$318.1 billion
-4.53
GDP per capita
US$31,000
US$29,600
-4.52
Exports
US$21 billion
US$21 billion
0
Imports
US$64 billion
US$45 billion
-29.69
Unemployment
9.4%
12%
27.66
Inflation
1.2%
4.5%
275
Public debt
126.8% of GDP
144% of GDP
Source: CIA World Factbook
1
2010
3
OECD Economic Forecast
13.56
Business opportunities
Imports
Imports by industry (% total imports)
Imports by country (% share)
Germany
Fuel
Italy
14
Machinery
15
China
France
13
40
Pharmaceuticals
8
Netherlands
Belgium
6
4
6
6
8
South Korea
7
4
Ships and Boats
45
Electrical
Equipment
8
Spain
3
Plastics
7
6
Vehicles
Other
Other
Source: International Trade Centre, Trade Performance HS, 2009
Source: CIA World Factbook, 2009
Exports
Exports by country (% share)
Exports by industry (% total exports)
Germany
11
Italy
Pharmaceuticals
6
Cyprus
11
Fuel
9
5
Bulgaria
51
7
7
5
4
4
US
UK
5
5
61
5
Turkey
4
Other
Electrical
Equipment
Machinery
Plastics
Aluminium
Fruit & Vegetables
Other
Source: CIA World Factbook, 2009
Austerity measures are leading to significant cuts in public
spending. However, an extensive privatisation programme
is underway in Greece’s large state sector and this is likely
to provide opportunities for foreign direct investment. There
are also a number of large EU funded infrastructure projects
in Greece, creating opportunities in road, rail, airport and
harbour construction. There are also projects on-going to
improve energy, water and sewage provision.
Incomes in Greece are around two-thirds of the European
average, however per capita consumer spending has
traditionally been relatively high 1. Specific opportunities exist
in the tourism, food and drink, healthcare, financial services,
security and environment sectors.
Source: International Trade Centre, Trade Performance HS, 2009
Financial information
Currency and exchange rate
Recent average 1.17 euro = £1 sterling
Exchange controls
A minority of countries impose restrictions on the exchange
of their currency. The Greek government does not impose
restrictions on exchange transactions.
Repatriation of capital
There are no restrictions on returning capital invested in
Greece back to its country of origin.
Tax
Standard rates of VAT: 23%. A lower rate of 13% applies
to food and medicine. A rate of 6.5% applies to hotel
accommodation, books and newspapers.
Contacts
UK contacts
UK Trade and Investment
1 Victoria Street
London
SW1H 0ET
Tel: 020 7215 2471
www.ukti.gov.uk
UK government support agency dedicated to assisting UK
businesses to export. Provides sector and country specific
information and advice, trade fair and outward mission
participation and bespoke market intelligence services.
Greek Embassy
1a Holland Park
London W11 3TP
Tel: 020 7727 3071
www.greekembassy.org.uk
Provides basic travel, visa and consular services and
access to translation services.
Local contacts
British Embassy
1 Ploutarchou Street
GR – 10675
Athens
Tel: 00 30 210 727 2600
www.ukingreece.fco.gov.uk/en
The embassy has a dedicated team, providing general
and sector related support for UK businesses wishing to
do business in Greece. The team can provide information,
guidance and access to business contacts.
British Hellenic Chamber of Commerce
25 Vas Sofias Avenue
Athens 10674
Tel: 00 30 210 721 0361
www.bhcc.gr
The Chamber promotes bilateral Greek-British trade
and provides business and investment services for its
members.
7
Oanda.com
Statutory requirements
UK regulations
The Department for Business, Innovation and Skills
controls the export of goods according to the nature of
the goods and their intended use, and also their intended
destination. For current export controls refer to:
www.bis.gov.uk
Import restrictions and licences
Goods in free circulation in the European Union may enter
Greece without restrictions and without the requirement for
documentation. Import licences may be required for nonEU goods.
Samples
Importers generally seek to avoid paying duty on goods
entering the country solely for marketing purposes. Goods
in free circulation within the EU are free from duties.
Marking of goods
Imported products must comply with local regulations
for the marking of goods. CE marking is required in
accordance with New Approach EU directives for certain
goods. Instruction manuals and food product labels must
be in Greek.
Shipping marks
The marks and numbers on shipment packaging must be
identical to the shipping documents. There are no specific
additional regulations in Greece.
Packing materials
Packing materials should be recoverable or reusable.
Duties
EU goods and goods in free circulation in the EU are duty
free. Greek tariffs are based on the harmonised system.
The Market Access Database (http://madb.europa.eu/
mkaccdb2/indexPubli.htm ) provides comprehensive tariff
details.
Insurance
No specific requirements.
rbs.co.uk/international
Documentation
Consular fees
Special certificates
Some countries will charge a legalisation fee for documents
such as a certificate of origin. If requested to have
documents legalised, Greek officials will generally do so for
a nominal fee.
Countries often require importers to obtain prior
authorisation to bring certain products into the country. The
Greek government requirements include:
Phytosanitary certificate is required for plants and livestock.
Pharmaceutical certificate is required for imports of
pharmaceutical products.
Certificates of origin
A certificate of origin is a document stating in which
country goods originated. A certificate of origin is not
normally required in Greece.
Commercial invoices
The customer’s VAT registration must be shown on the
invoice, as per the current EU procedures. For goods
moving within the EU, no requirement for invoices
accompanying the goods exists.
Consular invoices
A consular invoice is a document certifying a shipment
of goods and shows information such as the consignor,
consignee and value of the shipment. A consular invoice is
not required in Greece.
Bills of lading
A bill of lading is a document issued by a carrier to a
shipper acknowledging receipt of goods to a named place
of delivery. As some countries specify the type of bill of
lading that will be acceptable it is important to check with
the relevant customs authority. In Greece a bill of lading
may be ‘To order’.
For goods delivered by road, an international consignment
note (CMR) would normally be used in place of a bill of
lading.
To find out more about how RBS can support your
business needs in Greece, please contact your
relationship manager or call 0800 210 0235.
This marketing communication is for information purposes only and does not constitute a binding obligation on The Royal Bank of Scotland plc or The Royal Bank of Scotland N.V.
The Royal Bank of Scotland plc. Registered in Scotland No. 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB.
The Royal Bank of Scotland plc is authorised and regulated in the United Kingdom by the Financial Services Authority. The Royal Bank of Scotland N.V. is authorised by De Nederlandsche Bank and regulated by the Autoriteit Financiele Markten (AFM) for the conduct of business in the Netherlands.
The Royal Bank of Scotland plc is in certain jurisdictions an authorised agent of The Royal Bank of Scotland N.V. and The Royal Bank of Scotland N.V. is in certain jurisdictions
an authorised agent of The Royal Bank of Scotland plc.
534-0711gUK
July 2011