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Small Business

Greek shops running out of stock

Tuesday, March 31, 2015 - 01:44

Greece's organization for medium and small businesses says the country risks product shortages as early as May, as businesses face liquidity problems and foreign suppliers will only accept cash for imports. Ciara Lee reports.

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Shopping for a bargain, but some small Greek businesses are running out of stock. The country's business confederation says foreign suppliers are demanding pre-paid invoices or even cash in advance. Mina Minetsi is a shop manager. (SOUNDBITE) (Greek) VANITY CLOTHING SHOP MANAGER MINA MINETSI SAYING: "Business is not moving, nothing is moving, it's really worrying. With everything that is being heard every day - one day we have an agreement the next day we don't - people aren't shopping because they are afraid." Greece's economy had begun to recover from its six year recession before the January elections brought a change of government. George Kavathas is President of the Greece Confederation of Craftsmen. (SOUNDBITE) (Greek) PRESIDENT OF THE GREEK CONFEDERATION OF CRAFTSMEN AND MERCHANTS GEORGE KAVATHAS SAYING: "The change in government created a sense of optimism among the public. But the government lost valuable time when it did not specifically define reforms on February 20 at the Eurogroup - it should have made them into law then so the marketplace knew what was going to happen." Many small and medium-sized businesses shut down for good during the debt crisis. 20 percent of those still operating now say they're unlikely to be able to pay their taxes this year. (SOUNDBITE) (Greek) PRESIDENT OF THE GREEK CONFEDERATION OF CRAFTSMEN AND MERCHANTS GEORGE KAVATHAS SAYING: "About 8,500 businesses will close in the first six months of 2015, and more than 20,000 jobs will be lost, both wage earners, the self employed and the employers. Greece's EU lenders are currently considering a package of reforms proposed by Athens in order to secure a new bailout instalment. Without it Greece may be forced to exit the euro - and that could be even more disastrous for many businesses.

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Greek shops running out of stock

Tuesday, March 31, 2015 - 01:44