Greek bank closure cost economy 3 billion euros

  ATHENS — Exports and the retail sector took a massive hit during Greece's three-week shutdown, with ATM withdrawals limited to 60 euros a day. The tourism sector, also hit by many cancellations, wasn't included in the data. Greek banks have been closed for three weeks. Greece's economy suffered a 3-billion-euro ($3.2 billion) loss when the government shut down its banking sector on June 29. On Saturday, the newspaper "Kathimerini" estimated the financial cost of the draconian measures, which led to millions of customers' checks and bills being left unpaid and ATM withdrawals limited to 60 euros per day. The paper said the retail trade alone – which was in the middle of the peak summer season - suffered a 600-million-euro loss, citing estimates from commercial professionals. Consumers switched from apparel and electronics purchases to fuel and food, although the paper said both these categories also suffered losses. Losses to Greek exports - which include refined petroleum, medicine and food - totaled 240 million euros, the paper reported - quoting data from the Panhellenic Exporters Association. With the banking system frozen, many manufacturers struggled to ensure delivery of the raw materials that they need to operate. Around 4,500 containers are currently blocked at customs. The total cost of the bank shutdown to exporters has been calculated at 1.8 billion euros, according to an estimate by "Kathimerini." The bank shutdown led to Containers being stuck in Greek ports. Losses to Greek exports, including refined petroleum, medicine and food, totaled 240 million euros. The huge loss estimates were revealed two days before the European Union was due to release a 7.16-billion ($7.7 million) short-term cash loan to Athens. Their publication comes as leading German economists cautioned against approving a third Greek bailout, as Germany's Bundestag gave its backing for the start of talks for a new deal. In an interview with the newspaper "Passauer Neue Presse" on Saturday, economist Hans-Werner Sinn warned that any new aid would be "totally worthless" and "would never come back." The figures don't include the tourism sector, which is at the height of the summer season and saw a large number of cancellations from foreign visitors. Although the bank restrictions didn't affect international bank cardholders, many holidaymakers fretted over whether they would run out of cash on vacation. Greece's banks are likely to reopen on Monday, but restrictions on cash withdrawals will be lifted gradually and the backlog of missed payments will likely take several weeks to clear. — Agencies