One in ev­ery 10 checks is bounc­ing

Kathimerini English - - Focus - EVGENIA TZORTZI

Bounced checks rep­re­sent at least one in 10 fol­low­ing the in­tro­duc­tion of cap­i­tal con­trols as the liq­uid­ity drought is hurt­ing busi­nesses and en­trepreneurs due to the drops in con­sump­tion and cor­po­rate turnover.

The 10 per­cent rate for checks that can’t be pro­cessed is three or four times greater that the na­tional av­er­age recorded in the first half of the year, as it ranged be­tween 2.5 and 3 per­cent up to June 28, when the gov­ern­ment im­posed the cap­i­tal con­trols.

The bounce rate had soared to 27 per­cent in the first few days of the bank hol­i­day, and it has now sta­bi­lized at 10 per­cent, ac­cord­ing to data col­lected in the first week of Au­gust. How­ever, given that most checks are dated for the end of each month, it is likely there will be a surge in the bounce rate come the end of Au­gust.

The Econ­omy Min­istry’s de­ci­sion to ex­tend the grace pe­riod for checks by one month will ease the pres­sure on is­suers for cov­er­ing them in time.

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