Large Greek companies offer cash salaries during bank shutdown

  • Reuters, Athens
  • Updated: Jul 07, 2015 15:16 IST

At least three large companies in Greece, including the Mediterranean nation's largest electronic appliances chain, have paid their staff in cash after the government imposed limits on bank withdrawals last week in an attempt to ward off a potential collapse of the Greek banking system.

The moves by Greece's Kotsovolos, a unit of Britain's Dixons Carphone, and another two companies are signs of the domestic impact of the financial crisis, after Greece closed its banks and limited withdrawals from automated teller machines (ATMs) to 60 euros ($66) a day.

Capital controls have started taking a toll on Greek households' budgets and choking off the normal flow of operations for many businesses.

Four banking sources said on Monday that Greek banks will stay closed at least until Friday.

A spokeswoman from Dixons said Kotsovolos paid staff in cash last week and was waiting to see what happens this week.

Two other big companies operating in Greece have also paid part or their wages in cash, while a third was considering offering its employees such an option for the next scheduled payment at the end of the month, people familiar with the matter told Reuters on condition of anonymity.

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