According to a survey by the Institute of Small Businesses (IME) of the Hellenic Confederation of Professionals, Craftsmen & Merchants (GSEVEE), 9 out of 10 businesses in Greece lost revenue due to capital controls imposed on Greek banks.
The survey, conducted between July 21 and 27, found that the weighted average reduction in revenue for Greek firms was about 48%, while 31.8% of businesses lost more than 70% of their revenue.
“An immediate consequence was the shrinking of consumption by 50%, or 3.8 billion euros, during this period of time. With a modest assessment, we estimate that due to this reduction, the Greek state missed out on 570 million euros in indirect taxes,” the survey results noted.
Earlier in the day, the Athens Stock Exchange (ASE) plunged by 23% on it first working day since June 29. The stock market had been shut down a day after the imposition of capital controls.
“We must emphasize that given the already onerous situation that small business are in, the effects in the next six months could be even worse,” the survey said.
The survey also noted that the limited use of e-banking seriously hurt Greek businesses during these two weeks as only 1 in 2 firms use the online platform for transactions with customers and suppliers.
It is unknown for how much longer the Greek economy will function under the grip of capital controls. The Greek government is currently preparing for formal negotiations with international creditors on a third cash-for-reforms bailout package.