HAY-ON-WYE is running out of money and business bosses believe it will be impossible to obtain hard cash when thousands of tourists soon arrive for its world-famous literary festival.

The border town now only has one ATM after thieves made off with its only other cash machine from the Co-op supermarket in a ram-raid on Good Friday.

HSBC, Natwest and Barclays all closed their branches in Hay in the past 18 months – and took their cash machines with them – meaning the only ‘hole-in-the-wall’ left is the one outside the town’s Post Office.

MORE NEWS: Number of fee-free cash machines declining rapidly

And such is the demand placed on the cash point that it frequently runs out of money ¬– which is causing much frustration for tourists and businesses alike.

The Easter weekend saw thousands visit Hay and the cash machine was empty by Saturday evening – and stayed that way for the next two days.

Debbie Davies runs the Pughs@Londis grocery store, which is right next to the ATM, with Alison Greenow. They offer cash back but were soon running out of money themselves on the weekend.

They imposed a £20 cash back limit – and had to fend off many complaints from tourists taking out their frustrations.

“People need money for parking and were asking us for cash back in £1 coins while others were asking for £200 to pay for their stay at camp sites,” said Ms Davies.

“It really was an absolute nightmare as people obviously still need hard cash to pay for certain things and it was getting hard to come by.

“I really don’t know what will happen when the festival starts as there will be even more people here and I think there’s a good chance that people won’t be able to get their hands on money in Hay.

“We need to somehow advise people that if they are coming to Hay then they need to bring cash with them because I am dreading the festival.”

Andrew Williams, Chair of the Hay Chamber of Commerce, said his organisation was encouraging all businesses to get card readers as he said there were still a few – including takeaways and market traders – who were still only taking cash payments.

John Evans, from the town’s tourist shop on Oxford Road, is among them.

“The lack of access to cash really is a massive issue,” he added.

“And it will get worse when the festival is on. I know they are bringing in two temporary cash machines on the site so hopefully this will help a little.

“Because the one outside the Post Office is temperamental and the company running it are not from Hay so when there is a problem it takes a while to get it fixed or refilled.”

Mr Williams said the chamber had “limited powers to affect the situation” but encouraged businesses to embrace the new forms of technology.

“By adapting to the needs of our customers, we can make visiting Hay a better experience for everyone and avoid the spectacle of mammoth queues during the festival and summer holidays,” he added.

He also suggested that some shops could take the extra step of putting a cash machine inside their stores ¬– an idea quickly rejected by the team from Pughs@Londis.

“There is no way we could have a cash machine inside the shop,” said Ms Davies.

“Our insurance would fly up and, especially with what happened at the Co-op, who would want all the added stress and worry?”