EUROZONE-GREECE/MYKONOS REACTION Greek island residents and tourists react to capital controls

Record ID: 148773

  • Title: EUROZONE-GREECE/MYKONOS REACTION Greek island residents and tourists react to capital controls
  • Date: 1st July 2015
  • Summary: SOUVENIR SHOP 20 EUROS BANK NOTE BEING HELD BY A TOURIST TO PAY FOR HER PURCHASE TOURIST GETTING THE CHANGE
  • Embargoed: 16th July 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVA7KJQER4MOTKVX6RAQ296Q1AV7
  • Aspect Ratio: 16:9
  • Story Text: Capital controls imposed by the Greek government have not become an issue for holidaymakers who have arrived in the Aegean island of Mykonos in recent days or locals welcoming them to their shops and restaurants. They are, however, taking measures to avoid cash shortages.
    "Actually, we didn't have any fear, but we did take some measures as a precaution. On the cruising ship, there are ATMs, so we took cash from the ATM to be able to pay in shops where credit cards wouldn't be accepted," Laura Leon, a Venezuelan tourist who arrived at the Mykonos harbour on Wednesday (July 1) said.
    Greek banks have been closed since Monday (June 29), with Greeks limited to withdrawing 60 euros a day from cash machines.
    On Wednesday the government re-opened around 1,000 banks to pensioners only, because many of them do not have cash cards.
    As capital controls don't apply for credit and debit cards issued outside Greece, local shop owners are requesting visitors to use cash for their shopping in an effort to cope with the situation until they have more clarity about their financial future.
    "We are asking people to give us more change, so we don't run out of change for the week, until the banks are opened, but they are all very kind and they are cooperating and until now we didn't have a problem," said Nadina Takoussis who works at a souvenirs shop near the port.
    "We prefer to be paid in cash, so we can pay our providers in cash. They have to be paid in cash, there is no other way for them to survive right now," said Valentina
    Trikounaki who works as a communications manager at a local restaurant.
    The country is now heading to a snap referendum, called by the government for Sunday (July 5), where people are to decide whether or not to go ahead with austerity measures demanded by Greece's creditors.
    Even though life for tourists in Mykonos seems to be going as normal without worrying about the current financial crisis in Greece, most of them say they are fully aware of the Greek people's struggle and of the impact that the snap referendum might have on the lives of locals and potential visitors.
    "Our first concern regarding them (the Greek people) is if they do get out of the European Union, would it really help them should it happen? If they stay, will they accept the proposals they are being offered? Will the country be able to recover? Will the islands be as affected as the main land is being currently? These are all the fears we have, including financial ones. And hasn't the whole crisis just become some kind of political game that affects the whole Greek people who haven't actually asked for anything?," Julie Roessinger from Switzerland said.
    Amy Collins from the United States said she sympathises with the Greeks after suffering from the financial crisis that hit her country in recent years.
    "We had a financial crisis and I know how it felt to wonder what is going to happen to your world, and are you going to be able to get money, and feed your family and...So, I do, I am concerned for them that way," she said.
    Wilfried Marten from Germany said Greeks shouldn't be paying the consequences of a situation that goes beyond their control.
    "My opinion on this is that at the beginning the EU took Greece in knowing that it didn´t meet the conditions and requirements. So I think that the problem is not only with Greece, but also with the EU and my opinion is split. Perhaps it is better for Greece to start smaller to make it more competitive but I really don't know."
    On Wednesday (July 1) the country became the first developed economy to default on a loan with the International Monetary Fund.
    Prime Minister Tsipras told international creditors on Wednesday that Athens could accept their bailout offer if some conditions were changed, but Germany said it could not negotiate while Greece was headed for a referendum on the aid-for-reforms deal.
    In exchange for the conditional acceptance, the leftist leader, who has so far urged Greeks to reject the bailout terms in a referendum planned for Sunday, asked for a 29 billion euro loan to cover all its debt service payments due in the next two years.
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