Greece Enters New Year In Fiscal Difficulties
The drama of last October, when the Troika delayed the disbursement of the aid tranche, has been revived. The Greek State enters 2012, seeking funds to pay debts of €100-150 million in the last days of the year.
The reason is the delay of instalments by the Troika. Greece received the €9 billion instalment of September in December, and December’s instalment is expected in March, along with €80 billion of the new loan agreement.
Meanwhile, pension funds spending are excessive, and revenues are not going well, despite the new measures.
According to sources, the economic team is preparing an action plan to meet needs. With the regular flow of payments, the funds are sufficient until late January, according to local officers. However, there are also available €1-1.5 billion from the financial stability fund and the familiar solution of suspension of payments, in order to make ends meet until March.
Then, Greek bonds of €20 billion mature in March, while the scheduled instalment was €15 billion. Now, funds would not be sufficient if the new loan is not agreed.
The attempt of breakdown of expenditures is reflected in the decision of Deputy FinMin Filippos Sachinidis on the breakdown of credit in 2012 budget of €129.8 billion.
There are very strict limits on pension spending (€6.5 billion), consumer spending by detailed category as postage, legal fees, implementation of employees’ transfers, necessary recruitment etc. There are also strict limits on tax and interest returns, and guarantees for utilities, etc.
(capital.gr)