Greek Credit Crisis Forces Winemakers, Food Canners To Adapt : The Salt One of the key challenges to Greek businesses in the wake of the financial crisis is getting credit. Some companies have turned to cash and laid off workers, but it's been difficult to find the funds to keep up production.
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Greek Credit Crisis Forces Winemakers, Food Canners To Adapt

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Greek Credit Crisis Forces Winemakers, Food Canners To Adapt

Greek Credit Crisis Forces Winemakers, Food Canners To Adapt

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  • <iframe src="" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
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The crisis in Greece is taking a toll on the entire Greek economy because the Greek government has struggled to pay its debts, creating an atmosphere of uncertainty. Banks have pretty much stopped lending in the country. Now most businesses can no longer get loans. As NPR's Jim Zarroli reports, the problem is forcing Greek businesses to find new ways to survive.

JIM ZARROLI, BYLINE: Stellios Boutaris hails from one of Greece's best known wine making dynasties. His family owns the Kir-Yianni vineyard in a picturesque northern village. Today he walks through the room where the wine is made: an enormous dimly lit space permeated by the smell of red grapes.

STELLIOS BOUTARIS: Here's the winery. These are all stainless steel tanks.

ZARROLI: Nearly every piece of equipment we pass, he says, is imported.

BOUTARIS: Cork from Portugal, bottles from Italy, paper from Turkey. It's crazy. Unfortunately, Greeks are very much traders. They're not much producers.

ZARROLI: And that's left companies like his in a big bind. Boutaris heads into his sunny office overlooking the hills and settles down on his couch, dressed in a crisp monogrammed shirt. Boutaris, who studied at Wesleyan in Connecticut, has been pushing his industry to modernize. When the crisis began, the bottom fell out of the Greek market. Winemakers like Boutaris survived by exporting more with some success. But now, Greek banks no longer have money to lend. And foreign banks don't want to do business in the country.

BOUTARIS: In Greece, in general, the businesses have collapsed. There's no credit in Greece now. How can you do business without credit, you know? The thing has completely, completely collapsed.

ZARROLI: Because companies can't get loans, they have to pay for everything they buy - all those barrels and bottles and wine vats - in cash.

BOUTARIS: Now you're squeezed from both sides. Because you have trouble collecting money, because some of the wholesalers have gone out of business, so it's very, very difficult to sell. So you try to get cash from them. Not everybody can afford it. And your suppliers want to be paid in cash. So really, the circle has completely broken. It's, you know, the chain of business is completely broken.

ZARROLI: With credit so tight, Boutaris has had to delay some projects, like building a new wine cellar. It's a far cry from the old days. Before 2008, credit was as easy to get as a suntan in Greece. Olga Panagopoulou and her husband run Conex, a canned fruit company in Athens. She says bankers used to call her all the time.

OLGA PANAGOPOULOU: Because sometimes they press us, OK, take the money, take this equipment, do this, or prepare this or whatever. They beg you over money, you know. Eight years before they begged you.

ZARROLI: Today the money stream has dried up. It's a huge problem. Conex has a brief window each year to pick and can fruit. And during that period it needs to buy a lot of things like sugar and tin cans and citric acid. But customers tend not to pay right away. So the company borrows money to get by until it's paid. Only now, it can't get a loan.

PANAGOPOULOU: That means that we have to hurry up, to move fast, to find the funds, to press the clients to pay right away.

ZARROLI: The company has also had to press its shareholders for money. Conex has laid off some employees but it can't afford to lose too many workers during canning season. Panagopoulou insists that companies like Conex can compete on the world market.

PANAGOPOULOU: But the problem is not to export or to produce. The problem for Greece is to find the funds in order to produce. This is the real problem and the big problem now.

ZARROLI: But as long as the economic turmoil drags on, lenders are likely to avoid Greece. And even competitive companies will struggle. And with the unemployment rate near 25 percent, Greece needs to hold on to all the private sector employers it has. Jim Zarroli, NPR News.


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