How capital control changed Greeks?

Noam Stiekema

Cash has always been the preferred method of payment in Greece. After the closure of banks, however, charged daily limit for cash withdrawal from ATM situation dramatically changed. So the international company for Visa card payments in just two weeks of capital control reported an increase in payments to its maps of 135%. The data […]

Greece

GreeceCash has always been the preferred method of payment in Greece. After the closure of banks, however, charged daily limit for cash withdrawal from ATM situation dramatically changed. So the international company for Visa card payments in just two weeks of capital control reported an increase in payments to its maps of 135%. The data are for the period June 29 to July 12 and compared with the two previous weeks. In this case, the cards were paid everything – from food to gasoline. Last year, Greece 1 of every 33 EUR is spent with cards Visa, while the European average is 1 in 6 euros. During bank holidays, when the Greek government imposed capital control to limit withdrawals of cash, electronic payment systems continue to accept card payments at points of sale (POS) – shops, restaurants, etc, said general manager of Visa Europe to Greece, Cyprus and Bulgaria, the situation in our southern neighbor and the effect of the imposition of capital control on the use of electronic payments.

It also states that the three-digit growth measured in additional consumer spending in the amount of 50 million. Euro. Data refer to purchases made face-to-face POS terminal in the period 15 June to 12 July 2015. Used is the number of transactions rather than their value, to avoid errors due to price fluctuations. The increase in purchases of food is highest – 234%, for drugs – 206%, while transactions for gasoline rose by 193%. The company indicated that the change in payment behavior of Greeks during this period is greatly influenced by the accompanying political events, which is observed in similar periods. The largest growth in card payments is celebrated on July 4 – the day before the referendum, when the Greeks made over 163 thousand. Transactions, or 235% more than the same day a year earlier. Similar activity there in the final days of negotiations about the rescue plan for the country – 9, 10 and 11 July On July 14, the day before the Greek government to vote on the revised bailout transactions with this type of bank cards are 130 thousand. Compared to 58 thousand. Year earlier. In Sunday, July 19, before the Greek banks again to open the same day for the shops, Greek consumers made 56 thousand. Transactions, almost double the previous two Sundays, when the shops were closed.

The number of active debit cards Visa in Greece has doubled in July compared with the previous three months. In addition, about 500 thousand. Cards are issued in the weeks following the introduction of capital controls, according to the Association of Greek Banks, while the banks reported a significant increase in applications for cards. It is assumed that this is due to the many retirees who have hitherto relied only on their passbooks, and now they have to use cards at ATMs and POS terminals. According to a recent study of the Athens University of Economics on e-commerce, payments by cash decreased from 38% to only 10% before the capital controls, while payments with debit and credit cards increased to 75% of all payments.

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