Cashpoint surcharge proposed

[Maik]

Greeks bring in tax on cash withdrawals to stem crisis

Greece has announced a surcharge on cashpoint withdrawals and financial transactions in an attempt to stop capital flight out of the country’s banks and raise cash as the Greek government faces bankruptcy.

http://www.thetimes.co.uk/tto/news/world/europe/article4431233.ece


More news in the Daily Mail

[Phil]

 

A charge of 1€ on transactions over 1000€ is unlikely to affect Joe Public tourists? Unless I have misread the article.

[Maik]

You're probably correct, Phil (but it is posted in Greek News, not Holidays in Hellas). The nearest bank to me, by a long way, isn't the same bank my wages get paid into. So I get charged 1€ even if I draw out a small amount. To raise the claimed 180m€ some, um, let's work this out... oh yeah, 180,000m€ would have to be withdrawn (well, according to my arithmetic). I must try drawing several thousand euros out of an ATM (but I think the ATM would die laughing).

[Phil]

I suspected that the proposed new charge might be in addition to (not instead of) the current charges. 1€ on every withdrawal seems exhorbitant to me, especially if you have no choice of using a different bank with *free* facilities.

[Maik]

I suspected that the proposed new charge might be in addition to (not instead of) the current charges.

I suspect it is, Phil!

When I first read the article I thought it applied only to amounts of 1,000€ or more but it's not totally clear (to me, anyway) as to whether it will also apply to 'parts thereof', i.e. withdrawals upto 1,000€ will be charged (an extra) 1€, withdrawals upto 2,000€ will be charged 2€, and so on. If that's the case it could affect tourists as well.
 

[U4ea]

I suspected that the proposed new charge might be in addition to (not instead of) the current charges.

I suspect it is, Phil!

When I first read the article I thought it applied only to amounts of 1,000€ or more but it's not totally clear (to me, anyway) as to whether it will also apply to 'parts thereof', i.e. withdrawals upto 1,000€ will be charged (an extra) 1€, withdrawals upto 2,000€ will be charged 2€, and so on. If that's the case it could affect tourists as well.
 

But would we really notice it? On €1000 it would be 0.1%, and that variation and more is often found from Bank to Bank or from day to day. Even if only withdrawing €100 the new charge would only be 1%. The move is said to be aimed at people trying to get large sums of cash to move it out of Greece.

[Maik]

But would we really notice it?

  Well, believe it or not, exchange offices do get people coming in saying the likes of, "Your rate is 1.xxx8, up the road it's 1.xxx9" and then walk out to (maybe) get 2 cents more for their £100. So, yes, some people would notice!

I'm with you: will a surcharge of 0.1% stop people drawing their multi-thousands out and moving it abroad? 

[expat]

I think that a tourist renting a hire car would have a claim on, we have hired a car on Kefalonia and the west c.oast roads are all closed! I for one would be seriously annoyed that the roadworks are a joke! people who rent out accommodation to tourists cannot even provide the punters with a route map. This year the roads to Assos and Fiskardo are a joke, never mind the coastal route from Argostoli. Someone should be sacked for the sheer incompetence, it is now the tourist season, it is simply chaos, someone needs to hold their hand up and resign, full stop

[Bluenose]

Bugger didn't realise it was still quite so bad. Maybe inclement winter weather has played it's part (being charitable) but then again is anybody really suprised ? Due out mid June let's hope the lads get a move on. Won't hold my breath on the resignation Expat !

[expat]

What has really annoyed me is the fact that people are trying their best to encourage tourists to the island, people with good accommodation cannot provide someone with a hire car picked up at the airport a reliable route to their accommodation. This quite simply is not good enough! If you are going to Scala,Poros or Katelios its fairly straightforward. However visitors to Pylaros, Assos Fiskardo are left in the lurch, they have had over a year to sort out the problems and have done very little, the early visitors ie the Dutch and English have been ignored, you can bet that when the season picks up that the Mainland Greeks and Italians will have a better service. I am sorry if this seems a bit of a rant but the roads should have been serviceable for ALL our tourist arrivals. We do need to encourage future tourists to the islands, that way everyone benefits, accommodation owners, tavern owners and all the infrastructure that earns income from tourists.

[Maik]

May and June arrivals from the UK and the Netherlands account for about 75%-80% of visitors and without them the whole island would be pretty much like, well, Poros' eight week tourist season. So, yes, it would be nice if things were ready. Not sure why it's difficult for accom owners to provide clear, up-to-date info, though.

Getting back on track, sounds like the idea still has legs:

Gov't considering small tax on ATM withdrawals

The Greek government is considering the introduction of a small levy on ATM withdrawals Finance Minister Yanis Varoufakis said on Tuesday.

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_26/05/2015_550384

[TonyKath]

I realise Greece needs some dosh but taxing people on their ATM withdrawal and then VAT on the purchase seems a bit harsh!

Tony

[kefman]

Given we are getting about 1.40 euro for every pound against 1.20 -1.25 last year will we really notice a 1 or 2 euro charge.

[U4ea]

Given we are getting about 1.40 euro for every pound against 1.20 -1.25 last year will we really notice a 1 or 2 euro charge.

I agree completely! Other posts in this thread have been about the concept of the charge, but this one shows the reality. It's negligible for tourists, and very little for ex-pats who have a Sterling income. Not too bad even for those locals who don't have a Sterling income if they can afford to draw out more at a time but less frequently.

[Maik]

Given we are getting about 1.40 euro for every pound

I 'm not sure ATMs give the same forex rates as banks / exchange offices. I seem to recall that there's a choice of options when withdrawing cash on a non-Greek (or maybe non-euro) card, something to do with the conversion, but that the options aren't very clear. One gives a better deal - but I can't recall which.

There's some info here but I don't know how accurate or up-to-date it is.



https://books.google.co.uk/

The usual bank / exchange office commission on forex is 2%.

[U4ea]

Maik
It varies Bank to Bank. My Barclays Current Account charges what's in your post and doesn't always give the best exchange rate. My Nationwide one (ok, I know it's a Building Society) charges no commission on it's debit cards when used in ATMs. Nationwide also charges no commission on purchases on some it's Credit Cards.
N.B. Other Financial Institutions have cards with similar deals, so I'm advertising, just informing.

[Maik]

Greece's finance ministry said on Tuesday that it was no longer discussing with its European Union and International Monetary Fund creditors a banking transactions tax and a levy on ATM withdrawals, just hours after the finance minister had said such a proposal was on the table.

http://uk.reuters.com/article/2015/05/26/eurozone-greece-levy-idUKL5N0YH2G920150526

[kefman]

I have a Norwich and Peterborough current account as they have zero commission and no Visa conversion charge (I think) so with a bit of luck this time tomorrow I will be getting 1.40+ when I lift some money at Athens airport.  I used to use my Nationwide flexi account but they stopped the zero commission and no visa charge few years back and replaced it with a flexi plus account at £10/month.

[Aristarches]

All this talk of which card is best is all very well but begs the questions:  Are we going to be able to get any money from the ATMs and, if so, does the ATM in Katelios work?

On the advice of someone whose opinions I very much respect, I have a Fairfx card.  I top this up when the euro/sterling the exchange rate is beneficial.  This is only worthwhile if interest rates are, as now, very low.  There is a flat charge for using an ATM and a maximum daily withdrawal of 600 euro.  Otherwise, the card can be used as a debit card.   

[U4ea]

I've got the Flex Plus card. Yes I pay a monthly fee, but get holiday insurance, mobile phone insurance, car breakdown insurance and a number of other things thrown in.