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Uncovered checks suffocating Greek economy

18 November 2009 / 11:11:16  GRReporter
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By the end of this year the value of uncovered checks distributed on the market will reach over €3 billion. By October 2009 the amount of cash uncovered commercial checks and unrealized financial exchanges has reached €2.85 billion, which compared to the same period in 2008 was €1.11 billion—in other words a 157% increase.

According to Greek agency Teresia JSC in October 2009 specialized services have recorded and taken out of circulation uncovered checks, which account for €225 million, which shows an improvement compared to September, when this amount was €256.1 million. Authorities stress that for the same period in 2008 the uncovered checks had value of almost twice as low - €152.4 million. The number of “unfit” checks in October was 21 621 and it has increased almost twice since October of last year – 11 842. For the ten months of 2009 the total number of uncovered checks has reached 267 409 or three times more than in January-October 2008, when they were 88 909.

The phenomenon of uncovered checks prevents the market from functioning properly. Mostly affected are owners of small and medium companies, where check payment are mostly used. Big part of small dealers and enterprises are facing bankruptcy if state institutions do not take immediate measures for the uncovered checks crisis. 

Tags: uncovered checks Greek economy banks
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