• Register
Return to: Home > News > Assurance and Accounting > Greek profession at a standstill as Grexit looms

Greek profession at a standstill as Grexit looms

 

By Loukia Gyftopoulou

As Greece is immersed in seemingly unfruitful negotiations with its creditors, the accounting sector finds itself trapped in a motionless market, the International Accounting Bulletin found.

Waiting to see what the future has in store for them, accounting firms have put their plans on hold as even those clients that survived the crisis and aimed to develop and expand were forced to refrain due to the prevailing uncertainty.

"Companies have serious liquidity issues and the banks are unable to finance them at a desirable level," BDO Greece managing partner John Kalogeropoulos said. "The situation has intensified since the election and consequently the market is frozen."

As a consequence of this unpleasant sate, audit is currently the main source of accounting firms' dealings, seeing as it is a statutory requirement companies can't walk away from. But even there, the proliferation of small audit firms that have sprung as a result of the crisis has driven prices to the bottom.

Commenting on the phenomenon, Kreston Greece managing partner Criton Tzavelas said: "Fees are now one-third of what they used to be and we have to chase after clients to get paid for services we have offered.

"This goes for bigger firms too, which were forced to reduce both in prices and staff numbers."

Since January's general election saw the radical left Syriza party come to power for the first time, growing fears of a "Grexit" have reinforced instability and raised profound concerns that recovery is still not in sight.

But despite this shakiness of affairs, the accounting world preserves a certain amount of optimism for what is to come.

"Any analysis based on logic says an agreement will be reached in the end," said PwC Greece chief executive Marios Psaltis. "An accident cannot be excluded, of course, but the most probable scenario is an agreement will be reached.

"If that is combined with political and macroeconomic stability, we believe the economy will pick up."

 

To read more click here

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.