200,000 Small-to-Medium Businesses in Danger of Asphyxiation

stockProminent members of the Greek business world say that 200,000 small-to-medium businesses are in danger of financial asphyxiation.

The continuation of the economic crisis is leading small companies and businesses to a deadlock. Even businesses that managed to survive the five-year recession are facing serious financial problems, even bankruptcy.

Georgios Karanikas, General Secretary of the Hellenic Confederation of Commerce and Entrepreneurship said that unless the Greek government comes to an agreement with creditors, the Greek market will not recover. He also said that the stalling of negotiations and general uncertainty has left the market frozen.

Thousands of small companies and businesses have trouble meeting even basic funding needs such as paying the electricity bill, insurance, wages and sourcing.

President of the Union of Hellenic Chambers of Commerce and Industry Constantine Michalos said that, “the current situation not only threatens those who are at breaking point, and those who survived the crisis years, invested, restrained wages, paid taxes and avoided layoffs. It is threatening even healthy businesses.”

Both businessmen stressed the need for a bailout agreement that will reassure the Greek market that the country is not heading for bankruptcy.