Friday March 27, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Listed firms act as access to financing tightens

By Anestis Dokas

Greek banks are reportedly refusing to offer listed companies guarantees that they will be able to continue meeting their urgent liquidity requirements in 2012.

Senior executives of firms that managed to settle their debts last year and maintain open credit lines this year after protracted negotiations with lenders told Kathimerini that the current political flux and the postponement of bank recapitalization has cast a heavy cloud of uncertainty over the future. At best, they note, the banking system and businesses have adopted a wait-and-see stance. Its impossible to predict where the country will stand politically one month from now and no one can rule out the possibility that the government will declare a payments freeze one month from now if the countrys international creditors suspend the scheduled installments.

Banks have notified listed companies that they now control after the securitization of their debts to put financial plans on hold until the political landscape becomes clearer. This is especially trying for firms that cannot reduce production, as that would jeopardize their cash flows. Many of them have tried to improve their survival prospects by reorienting their activities abroad, given the bleak prospects of the domestic economy.

The lack of liquidity is prompting many firms to sell or reduce their holdings in order to protect their assets.

Even healthy firms are beginning to feel the liquidity pinch, and this has not escaped the attention of foreign portfolio managers who are watching the Greek market ready to snap up any opportunities. The overall picture that has emerged for the first quarter of the year is that two out of every three listed firms are facing very acute cash flow woes. On average, firms are two months behind in salary payments and have activated compulsory leave measures (two days a month), anticipating an average reduction in the wage bill of around 10 percent.

Many firms will wither in 2012, given the sorry state of the Greek business environment. We do not want to be among them, so the group will conduct itself as conservatively as possible in order to deal with the situation, said Evangelos Mytilineos, chairman and CEO of industrial conglomerate Mytilineos Holdings.

Tumbling turnover has compounded the problems posed by the lack of financing. For instance, the situation is especially tough in the construction sector, as firms involved in public works are being led to collapse. Realty developers who were in the middle of projects when banks froze further credit are in an equally sorry state, while the recession in the tourism sector is giving rise to a similar picture for many cash-strapped hotel businesses.

Even the food sector -- traditionally the most resistant of Greek industries during economically challenging periods -- is seeing sales fall as consumers cut back to the absolute essentials or turn to cheaper options.

Also there have been reports that listed firms with property assets are being refused operating capital loans due to their supposed risk of default.

ekathimerini.com , Monday May 14, 2012 (23:01)  
Bank deposits lost another 7.6 billion euros last month
Cash concerns keep Athens bourse action tight
Athens among top tourism destinations
High prices weigh on local organic market
ND, PASOK say coalition signed up to tough terms
Former Prime Minister Antonis Samaras on Thursday ratcheted up the rhetoric of the main opposition New Democracy party, which he still leads, in a scathing statement which accused the SYRIZA...
Greek defense minister heads to USA after controversy
Defense Minister Panos Kammenos heads to New York this weekend for Greek Independence Day celebrations after finding himself at the center of a controversy that led to the US Congress failin...
Inside News
BASKETBALL
All is well that ends well for Olympiakos
Young Ioannis Papapetrou helped Olympiakos stage an impressive last-quarter performance to beat visiting Efes Anadolu 86-75 on Thursday and bring its Euroleague losing streak to an end. The ...
BASKETBALL
Reds survive KAO Dramas scare in Piraeus
KAO Dramas gave depleted Olympiakos a scare at the Peace and Friendship Stadium on Monday, but the league leaders eventually managed to get their 20th win in 21 games. The Reds won by 10 (72...
Inside Sports
COMMENTARY
Time to get moving
More than two months have passed since the elections and the government has to stop running around in circles and adopt a program of specific reforms, with detailed calculations as to their ...
COMMENTARY
A competent crew is key
Greek politicians are mostly strangers to technocratic management and deft bargaining. The political system has regrettably unraveled the countrys public administration a process set in m...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. All is well that ends well for Olympiakos
2. ND, PASOK say coalition signed up to tough terms
3. Greek defense minister heads to USA after controversy
4. Police find Xeross bomb-testing spot
5. Judges send 32 to trial for kickbacks in submarine deal
6. Greek, Chinese FMs discuss deepening countries ties
more news
Today
This Week
1. Greece optimistic on deal with euro area next week
2. Opposition renews calls for minister to resign over legal cases
3. Greek foreign minister explores deepening of ties with China on Beijing visit
4. Stathakis against scrapping tax breaks for islands
5. Fed's Bullard: Grexit would be a Greek issue, not a euro issue
6. New Xeros safe house found near Athens, police say
Today
This Week
1. Total victory is unattainable
2. Next Monday is D-Day for state funds
3. EU asks Greece for more reforms to speed talks on bailout
4. PM faces Merkel amid race to detail reforms
5. New book by ex-US diplomat delves deeper into the recesses of Greek terrorism
6. Some more equal than others
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.