Greece and its establishments: purchases with cash
The Greeks withdraw between 80 and 100 million euros every day, despite the control of capital
- There is provision of basic products although some like meat are bought abroad
- While trade has fallen by around 70%, sales of food and gasoline have risen by 20%
- SMEs have more difficulties
In Greece there are unprecedented amounts of cash circulating through the streets of the country and there are some anomalies in the distribution of products. Apparently, these are the two most notable consequences since the closure of Greek banks that have been in this situation for fourteen days.
The country has reported that, according to banking sources, the Greeks withdraw between 80 and 100 million euros every day, despite the limit of 60 euros per person that is established in ATMs per person and 120 euros per week to retirees. Thus, the circulation of cash in the country has skyrocketed.
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After 14 days of banking corralito, the media reports that many businesses and businesses, mainly SMEs, already use only cash to provide their services. In this way, there are several examples that we can find in the Greek streets about this trend.
Apparently, one of the exceptions to Greek capital control is the payment to foreign suppliers to import basic products such as medicines or food, but it should be noted that since the Federation of Greek Companies complain that the procedure for a committee of the Ministry of Finance authorize which transactions go abroad is “inefficient and tedious”.
An owner of an Athens pharmacy says she has limited the sale to cash payment for the products except for those that are very expensive, which does accept plastic money. “Of course we could continue accepting cards, but while the banks are still closed we can not have the money to pay suppliers, so I collect and pay in cash,” he stressed.
The medium also tells us that we should not be alarmed by the rest of the products because there are enough quantities. Coffee, one of the most important products for Greeks abroad, is not lacking, so the corralito has not prevented external payments. A regent of a coffee franchise comments: “The parent company has told us that we have reserves for three or four months.”
A sector of products that, according to El País, is scarce, is that of packaging such as plastics and polystyrenes, which is forcing imports from outside and makes it difficult to sell certain products, such as food products, for example .
According to the representative of supermarkets, the only shortage of supplies has been due to fresh food that must be imported daily, like the meat that imports from the Netherlands. “Apart from this product, we have not had major problems, because our stock levels are high,” he says.
It is important to note that while trade has fallen by around 70%, food and gasoline sales have experienced a 20% growth . The problems are greater in the SMEs because their supply comes from abroad and some large companies are not having many problems because they anticipated the situation and the period of uncertainty.
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