Greece – Planning a Grexit from the EU?
The wind here on Sifnos in Greece is blowing at 50kmph today – is it an ill wind for all of Greece? Greek banks have been closed by the government who feared a potentially fatal run on deposits. The long lineups at ATMs on Saturday night June 27 might have us believing that their fear was justified. We could not find an ATM with any cash left in it. The ATMs have been restocked with cash, but the Greek people cannot withdraw more than 60 Euros a day.
There is a referendum planned for this Sunday, where the Greek populace will vote on accepting the last bailout terms offered by Greece's creditors. To add to the confusion, the bailout offer expired on Wednesday of this week. ??
A no vote would trigger a currency crisis and probably signal Greece's exit from the EU. Whether the Euro would continue to be the currency or the old drachma be reinstated is up for debate. Greeks who owe debt in euros but who suddenly earn income in drachmas would be crushed. Another deep recession could be a consequence.
There are reports of grocery stores running out of food as people stockpile for the crisis. Our B and Bs and hotels are begging us to pay with cash as they cannot get any. Employees and suppliers who are normally paid in cash are suffering from the lack of currency in circulation. Unemployment, which is already at 25.6%, is rising and bound to continue to rise. The Greek suicide rate has jumped 35% in a little less than two years.
The Greek economy has shrunk by a quarter in five years, and is further compounded by the daily arrival of refugees from the Middle East and North Africa. What will happen to these unfortunate souls is unclear.
We are OK here on Sifnos. Foreigners can still get money from the ATMs – the restrictions only apply to those holding debit and credit cards issued from Greek banks. Restaurants still continue to serve as usual, and we see little evidence of scarcity in the stores. The Greek people we come into contact with do not, on the surface, appear panicked, but our hearts go out to them just the same.
What will happen on Sunday?
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| Greeks Line up to Empty the ATMs |
Do you get any sense from the locals that there is an understanding of the source of the problem, such as the government continually running budget deficits, and the general aversion to paying taxes?
ReplyDeleteI really feel that there are two Greek peoples.
DeleteThe people we meet are hard-working and don't care about the fine points of international finance and national budgets/economies. As our friend Rania (the owner and chef at our favourite taverna) said, "I do not let it (the crisis) into my heart. I work 7 days a week for 12 hours a day and I have not had a vacation since 2001. We are only closed two days a year, but I love what I do. I am happy in the kitchen making the food that all my friends, family and customers love to eat. I am happy to be the one who makes so many others happy. We are not rich, but we will get by. I do not think about pension, because I will always do what I love to do."
The owner of our B and B has the same, cheerful demeanour.
There is no doubt that there is a group of people who feel entitled to a handout and a bailout and cannot see that a lack of productivity, nepotism,greed, and outright corruption has led us to the present situation. Governments have run on platforms of austerity and debt reduction, but they are rejected by the popular vote who cannot see that there is no alternative but to change.
Hi! Found your blog while searching for ATM-problems Sifnos. I am going to Sifnos on tuesday and have a few questions for you if you wouldn't mind. How many ATMs are they on the island? Is it any problem with getting cash as a tourist? I am a little but afraid of bringing a lot of cash (we are staying on Sifnos/Folegandros more than 2 weeks, and are paying all our hotels in cash..) We are staying in a simple hotel without a safe box. What would you recommend? Have a lovely stay in Greece! /Lisa
ReplyDeleteHi Lisa
DeleteJust found this comment now, sorry.
We have had no problems getting cash as the restriction only applies to Greek citizens or those with a Greek ATM.
We have been able to pay all of our bills with Visa.
Make sure to go to the Cameron restaurant and say hello to Panos and Renia for me. Great food, great value, great people!
Hi Lisa
DeleteJust found this comment now, sorry.
We have had no problems getting cash as the restriction only applies to Greek citizens or those with a Greek ATM.
We have been able to pay all of our bills with Visa.
Make sure to go to the Cameron restaurant and say hello to Panos and Renia for me. Great food, great value, great people!