Olive oil and other agricultural products of Greece, it has been reported, can play an important role in the revival of the country’s devastated economy. Towards this direction, the National Confederation of Hellenic Commerce has compiled two proposals to boost Greek olive oil exports during the current unfavorable business conditions. As expected, their epicenter is financing and the fluctuation of prices in the olive oil industry.
First, the confederation wants banks to actively back any olive oil export by immediately financing the venture, thus minimizing payment standby time to zero and eliminating any potential glitches in the process.
The second proposed measure would kick in when olive oil prices fall below a critical limit below production costs. At that time the oil producers, instead of selling, would store their oil and receive bank funding equal to 70 percent of its value. This measure aims right at the center of the big firms’ policies which manipulate olive oil prices to their own benefit and would supposedly deter them from resorting to such practices.
According to the confederation, if their proposals are implemented, in only five years the total of Greek olive oil production will be exported as branded, yielding multiple benefits for the economy.
Of course, if these suggestions find their way to a legislation act, it remains to be seen if the barely-breathing banking sector can meet the requirements due to the limited resources.