While post-dated cheques, a local phenomenon illegal in many countries, have always been a way of business-life here, the fact that they are now being written much more freely, for a longer duration, and often without sufficient funds to cover them is causing financial ruin to many companies.

 According to Iraklion MP Manolis Stratakis, the situation is so bad that he has asked the parliament to take preventive measures to control this serious problem, which was the subject of a recent study by a leading business organization.

The study, conducted by the General Federation of Professionals and Production Companies in Greece, found that overdraft cheques weigh heavy on the Greek economy, especially hurting the small to medium businesses.

According to informed sources, the market is suffocating as 30 percent of the cheques are post-dated for six months and over, 55.5 per cent are post-dated from two to five months, while one in two small to medium businesses cover 50 per cent of their transactions with post-dated cheques.

"The local Iraklion market presents an even worse problem and despite any efforts and initiatives from local institutions, there have been no essential results," Mr. Stratakis pointed out.  "It is necessary for the government to apply effective measures to reverse the negative economic climate."

He went on to ask the economy and development ministers just what measures they will take to combat this serious problem.

Stavros Kapsalis, Manager of the Central Pancretan Bank office in Iraklion, said that he couldn't give an exact number for the bounced cheques returning to the bank daily.

"However, I can say that the bounced cheque phenomenon was on an incredibly fast rise in April, May and June of this year," he said. "But since then, at least in my bank, it has begun to recede."

He went on to say that the bank provides its customers with information and certain tips on the correct use of cheques and henceforth the criteria on issuing a chequebook are stricter than in past years.

 He said that in all cases of bad cheques, the information goes to Tiresias S.A., which is an interbank company specializing in the gathering and disposing of information about the economic behaviour of enterprises and private individuals . . . something like a blacklisting of economic histories and profiles.

Tiresias reported that in August this year cheques adding up to almost 210 million euros bounced nationally, which is up by more than 110 percent from August of 2008, a fact that seems to indicate that other banks are not having the same positive trend that the Pancretan Bank is experiencing.

"Of course the government can always put a stop to all this by disallowing the ever-growing postdating cheque syndrome," Mr. Kapsalis added.

Meanwhile, a recent survey by the Athens Chamber of Commerce and Industry found that some 250,000 of its members were unable or finding it difficult to meet their cash-flow needs.

And, here at home, a quick survey by The Khronicles of 20 small, medium and large businesses in the four townships, found that every one of them is affected by bad cheques, one way or another.

For example, the owner of a relatively large business in the Industrial Area in Alikarnassos, who requested anonymity, said that "bad checks from my customers are definitely on the rise lately. About 11 percent of the checks coming in are bad."

He added: "I found it a good practice to immediately give them to my lawyer, who just happens to be my wife!"