When Greece’s debt crisis struck in 2009, George, owner of a jewellery shop outside Athens, found himself saddled with a new €100,000 loan just as his business turnover plummeted.
As the Greek financial sector collapsed, the loan was passed from bank to bank before ending up with a credit servicing company that refused his request to pay in more affordable installments. The dispute went to court, where it remains today, stuck in a legal system overwhelmed by hundreds of thousands of similar cases.
While he waits, George’s debt has doubled because of unpaid interest.
“I have had a rope around my neck for 16 years. I’m trapped,” said George, who asked Reuters not to use his full name for fear it could complicate his situation. “I can’t take a new loan to pay the old one, to invest in my business, or even issue a credit card.”
Many small businesses cut off from credit
