The approximately 1,600 Greek businesses operating in Cyprus are facing serious problems. The businesses, which are mostly focused on shipping, commerce and tourism, are at risk of being lost, seized and having their working capital slashed.
The president of ESEE, the national confederation of Greek commerce, V. Korkidis explained that “the tragic situation in Cyprus will definitely have an immediate impact on the Greek market, since a large part of domestic entrepreneurship is closely related to Cypriot firms”.
The serious problems are cause by the inability to perform any transactions and all payments being blocked, since Greek banks have ceased processing checks issued by the three Cypriot banks in Greece. With businesses unable to access their capital, they are unable to pay taxes, insurance contributions, utilities, suppliers and employees.
These serious problems will also affect the export of trade to Cyprus, which is the fourth top destination for Greek products.
