The Federation of Hellenic Enterprises (SEV) urged for a fast resolution of the non-performing loans problem and criticized the policy of over-taxation of the economy.
In its weekly bulletin, SEV commented that bank deposits that fled the country in the last 15 months were not expected to return to Greek banks, and if bank deposits failed to increase, capital controls were not expected to be lifted. “Capital controls will be always with us, at least as long as confidence is not restored on economic outlook. And with capital controls on enterprises there cannot be economic growth. Therefore, to cover this gap, a faster resolution of the non-performing loans problem must be sought,” the Federation said. SEB, however, stressed that capital controls have not seemed to significantly affect the operation of well-organized Greek enterprises or those that have access to revenue from exports.
“The situation for smaller enterprises seemed to might have been worse than with larger enterprises, but companies have developed a wide-spread transaction system with the use of bank accounts abroad (mostly Cyprus, Bulgaria, etc),” the Federation stressed.
SEV added that the result of an excessive taxation of consistent taxpayers and enterprises that still stand on their feet would be catastrophic as available income and incentives for work and business activity will collapse, leading the economy again to recession, undermining the goals of the memorandum. “While public spending remained unscathed, the government is burdening once again with higher taxes all consistent taxpayers and enterprises that still distribute a dividend. This way the productive and social web of the country was about to collapse,” SEB noted.
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