When the going gets tough, Greeks shop
Spending sprees help nervous consumers through hard times
BUSINESS has been so brisk in the giant Kotsovolos appliance and electronics store in the upper-middle-class suburb of Marousi, Athens, that you might think a sale was on.
But no. It is panic buying, say those who work here. Increasingly concerned that greater economic trouble lies ahead, and limited in how much cash they can take out of banks, Greeks have been using their debit cards to buy ovens, fridges, dishwashers — anything that can hold its value in troubled times.
“We have sold so much,” said Despina Drisi, who has worked in the store for 12 years. “People have been pulling at my sleeves. We’re spacing things out now to cover the holes on the shelves.”
The bustle of everyday life looks unchanged. Greeks, many of whom long ago traded in their cars for cheaper scooters, clog the streets at rush hour on their way to and from work. Tourists pack the Acropolis. Friends meet, greet and sit in cafes.
But beneath the surface, fear is growing. Greeks could face the unknown consequences of being pushed out of the eurozone within the next week if Greece and its creditors cannot come to an agreement.
Some are watching TV and checking their smartphones constantly. Others refuse to follow what is going on in Brussels. But either way, many are doing what they can to protect themselves financially, buying appliances and jewellery or even prepaying their taxes so they will have taken care of one financial obligation if they end up losing some of their savings to a bank failure, as happened to depositors in Cyprus under a bank rescue plan there in 2013.
“Panicked doesn’t begin to describe how people feel,” said Antonis Mouzakis, an Athens accountant. “I have a huge number of customers wanting to file their taxes right here, right now, to have the tax calculated and paid instantly before a possible haircut. Even if the tax is à40 000 to à50 000, they pay it off in one go.”
Jeweller George Papalexis said a customer had approached him wanting to buy a million euros’ (about R13.8-million) worth of merchandise. But Papalexis refused, because he was more comfortable holding on to the jewels than having money in Greek banks.
“I can’t believe that there I was, turning away a milliondollar offer,” he said. “But I had to turn down the deal. It’s a measure of the risk we face.”
Mouzakis said many companies were also trying to settle their debts quickly, not wanting to owe money if their deposits are hit in a deal to rescue Greek banks. Others do not want to accept payments for the same reason. When banks in Cyprus were bailed out, depositors with more than à100 000 lost about 40% of their money.
And individuals are doing what they can to protect themselves. At night, many of them walk the streets in search of ATMs that have not been emptied of cash. Others are using computers to spread money to various accounts or to relatives, low- ering the total in each account.
With banks closed, Greeks are limited to withdrawals of à60 a day from ATMs and cannot make international transactions — factors that have gutted some businesses already.
But ATMs give out only à20 and à50 notes, and they appear to be running out of 20s.
Some businesses have begun yet another round of lay-offs. “My boss came in and said: ‘We are all going to die,’ ” said a young woman who works for a small travel agency in Athens.
Her boss, who “was completely, totally panicked”, reduced her hours to two days a week.
The agency has been unable to issue tickets, because Greek travel agents have been blocked from the global ticketing system.
And most medicines are imported, so pharmacists cannot pay for them. Chemist Michalis Moschonas said his customers had been concerned, if understanding, when he had to turn them away. He was also understanding, allowing many people unable to get enough cash to pay for their medicine, to owe him money.
Another man said he was thinking of buying a car — even though he did not need one — to reduce his cash balance. —