A study carried out by the Greek Confederation of Professionals, Craftsmen and Merchants finds €50bn bank recapitalisation is likely to result in only a modest decline in the rate of closures.
Some 40,000 small businesses across the country are likely to close in the second half of 2013 at a cost of up to 90,000 jobs, despite a major bank rescue program implemented before the summer, a study published this week warned.
The survey of 1,200 small businesses conducted between July 10 and 16 found that the €50bn bank recapitalisation was likely to result in only a modest decline in the rate of closures, from an estimated 55,000 in the first half of the year.
The idea behind the recapitalisation program, part of the country’s second international bailout deal, was to pump cash into the real economy.
The survey also found that some 65.7% of small businesses said they had reduced hours or salaries for staff so far this year, while 75.4% described their situation as being worse than in 2012.
“The most common sentiment expressed by those involved in the survey was that the crisis is worsening with increasing speed,” said Dionysis Gravaris, head researcher at the Greek Confederation of Professionals, Craftsmen and Merchants, or GSEVEE, which commissioned the study.
The coalition government has promised to lead the country out of recession and return to bond markets next year.
Source: AP, ANA-MPA, EnetEnglish
