ECONOMY

Cash-strapped firms consider moving out

Local companies have increasingly been resorting to relocating their base away from Greece in order to avoid having to halt production in this country as they are deprived of credit.

According to reports, more and more managers are discussing the idea at corporate board meetings as a measure of last resort if they cross the red line of shrinking cash reserves.

Greek entrepreneurs say they need to see immediate initiatives by the government ensuring that cash flow returns to normal in the market, arguing that they simply cannot afford to stay operative throughout 2013 unless credit lines reopen.

Kathimerini understands that since the beginning of this year Greek industries have been applying two last-ditch policies in order to avoid relocating their companies. The first centers on so-called “necessity” exports, whereby companies are forced by low domestic demand to export their commodities abroad even if it entails losses in the end and as long as it maintains their sales levels intact. The second policy concerns the operation of production plants only for a single shift at night, when electricity rates are lower.