Within two weeks, Spiros
had transferred a large chunk of the money, which he'd saved over a
30-year career in the armed forces, to his relative. Spiros feared his
savings would be destroyed if he left them in Greece. He wanted to
protect himself from a "Grexit" -- the term coined for the country's exit from the eurozone -- and the likelihood of that slashing the value of his money.
"I had never wanted to
move my money abroad it but I was forced to do it," says
Thessaloniki-born Spiros, sounding depressed as he described everyday
life in his crisis-struck homeland.
"We're living in constant
uncertainty and we don't know if there is going to be food on the table
or if we're going to be able to pay for our children's university
studies. We don't want to see our children sacrificed and pay for the
mistakes of the politicians."
The father of three says
Greece's leaders have failed their people. Spiros says finding a safer
haven for his savings was the "last option" that came "out of the
necessity" to safeguard the future of his family.
"I've always paid my taxes," he says. "This is now a way of protecting our family since the state is not protecting us."
Greece, the country whose
collapsing finances triggered the eurozone debt crisis, is facing its
fifth year of recession. It heads to the polls Sunday for the second time in six weeks. The first vote ended with stalemate with no party able to form a coalition.
This next vote is crucial; it could change not only the course of Greece, but all of the 17-country eurozone.
The race between the pro-bailout New Democracy party and the anti-austerity package Syriza coalition appears to be tight.
But should the country remain in political limbo, it risks a disorderly default on its next bill payment.
If Greeks vote against austerity there's a risk the international money that is bailing out Greece will stop flowing.
If they vote for
austerity there's no guarantee that conditions will improve. After
nearly three years of painful measures Greece's economy has sunk further
into recession. Further, unemployment for youth under age 25 jumped
from 30.2% in the first quarter of 2010 to more than 52% in the first
three months of this year, according to Eurostat figures.
Amid the political turmoil and economic insecurity, many Greeks are simply looking to safeguard their money.
Analysts have estimated a
"Grexit" and subsequent return to the drachma, Greece's currency before
the euro, could drastically cut the value of existing cash.
Spiros is one of many Greeks unwilling to risk their savings. The Greek
banks are bleeding cash: according to Bank of Greece figures, total
deposits in the country fell by nearly 25% from June 2010 to April this
year.
On May 14, uneasy Greeks
pulled about €800 million out of local banks, prompting Greek President
Karolos Papoulias to relay a message given to him by the country's
Central Bank Governor George Provopoulos: Panic was possible.
But a major bank run could potentially trigger the collapse of Greece's banking sector, which could then prompt Greece to leave the single currency, analysts say.
"Greek bank deposits
have been falling for a number of years now, this is not particularly
new," Jonathan Loynes, chief European economist at Capital Economics
says. "But there would appear to be clear signs of acceleration of a
trend over the last few weeks."
He believes people are
driven by fears over a potential return to the drachma -- but warns
widespread withdrawals run the risk of creating a self-fulfilling
prophecy.
"If they're pulling
their money out then that de-stabilizes the banking system and the
economy further," says Loynes. "Then of course there's a danger that it
becomes self-fulfilling that actually makes a Greece exit more likely."
Anxiety on the streets
of Greece is being exacerbated by the absence of any precedent for
exiting the currency. Different scenarios have surfaced -- including a
return to the drachma, or having a Greek-specific euro -- but no one
knows what the repercussions of a eurozone exit will be.
"We don't know what our
fate is going to be," says Eirini, a 53-year-old public relations worker
from Athens, echoing a widespread sentiment in Greece's capital. So
far, she has left her savings in Greece but intends to transfer a large
portion of her savings to the bank account of her daughter in the UK.
"This will certainly
make me feel more secure," says Eirini, adding that many of her friends
and relatives have already withdrawn their money from Greek banks.
"This feeling of the
unknown is frightening us," she says. "We never imagined that something
like this would happen -- it's something unprecedented and we're all
shaken."
At the same time, Greeks
struggling under the austerity measures are being warned that an exit
could bring even greater woes than those they are living with.
Late last month the
National Bank of Greece warned an exit "would lead to a significant drop
in the living standards of Greek citizens."
According to the bank,
an exit could cut average income by 55%, while any new currency would
depreciate 65% against the euro. The recession would deepen by 22%, says
the bank, pushing up inflation and sending unemployment levels even
higher than their current 21.9%.
Amid the gloom, nervous
savers simply want to keep their money safe, according to Danai, a
broker from Athens who also has moved some of her savings offshore. "If
there's a switch from euro to drachma nobody can say with certainty
what's going to happen," she says.
Meanwhile Spiros is determined to buffer his family against this uncertainty despite his deep patriotism.
"I love my country and
I've always saw myself being in the frontline, especially now that the
times are difficult. But our leaders have betrayed us," he says. "We
have a responsibility towards our country but we also have a
responsibility towards our families." (Teo Kermeliotis per "CNN")
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