Bills of exchange measure adds to market headaches

Bills of exchange measure adds to market headaches

The decision to postpone the payment date of bills of exchange issued for sectors affected by the Covid-19 pandemic between March 30 and May 31 by 75 days has already started a chain of negative consequences in the market.

The measure is creating a major cash flow problem for hundreds of importing enterprises that have bought merchandise and raw materials from abroad for which they paid in advance. There is also serious concern for wholesale companies that have sold goods and have checks that are postdated by three or six months so their payment is now put off by another two-and-a-half months.

Representatives of major firms explain that the payment suspension is generating huge problems as regards their continued operation and sustainability as it has led to a massive forfeiting of payments regarding debts created before the outbreak of the new crisis.

The issue is explained in a letter sent to the competent ministries by the Greek Exporters Association, which asks for measures to immediately bolster the liquidity of enterprises, while the suspension was seen as applying horizontally, even to firms which are quite capable of paying up.

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