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Greece: Piraeus – First Municipality Unable to Pay Workers
Posted by keeptalkinggreece in Economy, News, Politics
Piraeus Municipality is broken! Mayor Panagiotis Fasoulas announced at a press conference that as of August 13, the City of Piraeus will not be able to pay salaries to workers or suppliers and fulfill any other of its obligations. Fasoulas named as cause of the dramatic financial situation of Piraeus the fact that governmental Deposits and Loans Fund withholds 2.2 million euros. This amount sums up from loans the municipality took in the past. Piraeus’ mayor claimed that there hasn’t been any new loans and that the municipality has paid back part of the loans the former city council had taken.
Fasoulas said he has informed the Minister of Finance and that the hopes to prolong the time for repaying loans and to renegotiate the interest rate.
Panagiotis Fasoulas was a famous Basketball player for PAOK and Olympiacos before entering politics. He was elected Mayor of Piraeus on October 2006 as candidate of now governing PASOK. Municipal elections are taken place most probably this year, but “Fasoulas declined to confirm whether he will be candidate again”, portnet.gr reports.
Municipality of Piraeus hosts the biggest port and biggest container terminal in Greece, has a continous tourists’ traffic and is the base for many maritime enterprises. Piraeus is the first municipality to go bankrupt.
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