Western Union is known for providing a financial lifeline during natural disasters and military conflicts as well as other much smaller crises, such as a lost wallet.
But Greece’s troubles are proving difficult for even the Douglas County money transfer giant to overcome.
“Due to restrictions imposed across the financial sector, by the government, our services are not available at this time,” Western Union said in a statement Monday afternoon.
The company said it would monitor the situation closely and restore services as soon as possible.
The Greek government issued new capital controls that, among other things, prohibit outbound money transfers and limit ATM withdrawals to 60 euro, or the equivalent of $67.44 per day.
The restrictions, designed to prevent a run on the banking system, are scheduled to last until after a Sunday referendum on new austerity measures that European Union and International Monetary Fund officials want implemented.
Greece, which faces a 25 percent unemployment rate domestically, will suffer if workers abroad can’t send money back, said Miles Light, a business research economist at the University of Colorado, who has studied the economic impact of remittances.
With banks closed, getting enough physical currency to various agent locations is a huge problem, Light said. “It is as much a logistical issue.”
The announcement didn’t seem to faze Western Union’s stock, which dropped 1.21 percent to $20.36 on Monday versus a 2.1 percent decline in the S&P 500.
WorldRemit, , also transfers money to Greece. The company did not respond to requests for comment before deadline.
Western Union, , deals in about 120 currencies and reaches every country except two — North Korea and Iran.
Each year the company waives about $30 million worth of remittance fees to help move money into trouble zones, most recently earthquake-stricken Nepal, said Patrick Gaston, president of the Western Union Foundation.
Although rare, suspensions do occur, usually related to fraud or capital controls. Two years ago, the company limited the size of transactions from Argentina to the U.S. during a currency crisis.
Back in 2012, Western Union suspended money transfers into Jamaica’s St. James Parish, which includes Montego Bay, to counteract a large-scale lottery scam targeting U.S. seniors.
The Greek cutoff, if extended, could prove especially problematic for foreign tourists. While their ATM withdrawals aren’t being restricted, they may find machines empty as locals rush to get the cash that merchants are increasingly demanding.
Aldo Svaldi: 303-954-1410, asvaldi@denverpost.com or twitter.com/aldosvaldi
