October sees big rise in bad checks

The value of bounced checks soared by more than threefold year-on-year in October after the end of three-month grace period – granted due to the 23-day bank holiday this summer – at the end of September.

Data from Teiresias system’s credit blacklist showed on Tuesday that the value of bad checks reached 62.5 million euros last month against 18.9 million in October 2014.

However, in total, the first 10 months of the year witnessed a significant decline in bounced checks, which amounted to 170.9 million euros from 255.8 million a year earlier. This is attributed not only to the three-month grace period from July to September but also to a declining trend in the number of checks owing to the drop in corporate turnover in general and the lack of confidence in transactions.

Since late June, when the capital controls were introduced, most businesses have been accepting only cash or credit card payments, but not checks. Others exchanged checks in the market with others that had a longer duration.