Retail trade and the economy are hostages of the problems in the banking system, Alfa Mega Super Markets Chairman and owner, Andreas Papaellinas stated.
In a rare interview to StockWatch, Chairman of Papaellinas Trading outnumbered the problems that retail trade faces and argued that the sector will not recover unless the banks’ capital problems are solved.
“Let’s be realistic. There will be no growth without borrowing. Either we want it or not”, he said.
Being a Board member in Laiki Bank for 23 years, Mr. Papaellinas cited the problems in the market due to lack of liquidity and lower lending.
“I believe that the difficulties of our banking system are the essence of the problems that the Cyprus economy faces”, he said.
“The exposure of the Cypriot banks in Greek bonds forced them to restrict lending with chain impacts on retail trade for both the suppliers and the super markets”, he added.
Mr. Papaellinas talked about the responsibilities that banks have for their investments in bonds as well as their credit policy in the past few years.
“The banks used to grant loans for large and unnecessary extensions, pushing bad debts up. Their customers do not meet their obligations now”, he noted.
“From the time we suggest that we must look ahead, there are responsibilities”, he said and asked by the Boards to review and the shareholders to wake up.
Retail trade
Retail trade conditions are dramatic, since liquidity has caused delays in payments, Mr. Papaellinas said.
“This is not healthy. We may witness collapse of companies because of the chain problems”, he added.
“You know, us who lived through the ups and downs of retail trade, know that a default has a huge impact on the general economy of a country”.
Alfa Mega
In his interview, Mr. Papaellinas referred to the strategy of his super market.
He talked about the two new super markets in Paphos and Deftera and the Company’s intention to bet more on fresh and easy.
“Crisis delays the Company’s development plans since a large portion of new investment should now be made from its own resources, because of the banks”, he noted.
Alfa Mega bets on the flexibility that the new super markets will give to Papaellinas Group as well as the low construction cost.
Mr. Papaellinas welcomed the foreign competition and said he learned from its tactics.
He disagrees with the salary freezing and cited the “golden formula” of profitability for the super markets to be viable.
In a rare interview to StockWatch, Chairman of Papaellinas Trading outnumbered the problems that retail trade faces and argued that the sector will not recover unless the banks’ capital problems are solved.
“Let’s be realistic. There will be no growth without borrowing. Either we want it or not”, he said.
Being a Board member in Laiki Bank for 23 years, Mr. Papaellinas cited the problems in the market due to lack of liquidity and lower lending.
“I believe that the difficulties of our banking system are the essence of the problems that the Cyprus economy faces”, he said.
“The exposure of the Cypriot banks in Greek bonds forced them to restrict lending with chain impacts on retail trade for both the suppliers and the super markets”, he added.
Mr. Papaellinas talked about the responsibilities that banks have for their investments in bonds as well as their credit policy in the past few years.
“The banks used to grant loans for large and unnecessary extensions, pushing bad debts up. Their customers do not meet their obligations now”, he noted.
“From the time we suggest that we must look ahead, there are responsibilities”, he said and asked by the Boards to review and the shareholders to wake up.
Retail trade
Retail trade conditions are dramatic, since liquidity has caused delays in payments, Mr. Papaellinas said.
“This is not healthy. We may witness collapse of companies because of the chain problems”, he added.
“You know, us who lived through the ups and downs of retail trade, know that a default has a huge impact on the general economy of a country”.
Alfa Mega
In his interview, Mr. Papaellinas referred to the strategy of his super market.
He talked about the two new super markets in Paphos and Deftera and the Company’s intention to bet more on fresh and easy.
“Crisis delays the Company’s development plans since a large portion of new investment should now be made from its own resources, because of the banks”, he noted.
Alfa Mega bets on the flexibility that the new super markets will give to Papaellinas Group as well as the low construction cost.
Mr. Papaellinas welcomed the foreign competition and said he learned from its tactics.
He disagrees with the salary freezing and cited the “golden formula” of profitability for the super markets to be viable.
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