PASOK, Nea Dimokratia Tried To Restructure Party Debts

Posted by in Politics

 Socialist PASOK and conservative Nea Dimokratia, Greece’s biggest parties that governed the country for almost four decades, seem to believe theirs voters are a flock of obedient sheep. Therefore, they inserted an amendment to restructure their own debts into a bill concerning livestock breeding and livestock facilities. The amendment was inserted in the livestock bill “in the middle of the night”, so to say, when all eyes were turned to the Greek bond swap.

The amendment would allow PASOK and ND to write off unpaid interests of their massive debts. Among others, the proposal foresaw cutting interest rates from 8% down to 4%, and decrease party loan guaranties from 60% of the state funding down to 50%.

However the two parties were forced to withdraw the proposal, after strong reactions by two smaller parties, Democratic Left and Democratic Alliance.

According to news portal in.gr, the two parties debts amount 244.2 million euro. The portal reports that for the year 2011, the state funding of the Greek political parties was 54 million euro, that is 5.2 million euro less than 2010. PASOK was funded with 21.8 million EUR, Nea Dimokratia with 17 million,  KKE 5.2 million, LAOS 4.4 million, the SYRIZA 3.9 million and the Ecologists Greens 1.8 million.

The PASOK/ND debt restructuring was to take place, while millions of private households have no idea how to pay back their loans to the banks, and while small investors feel unprotected from the offcial debt-restructuring PSI.

According to the new laws, the state can confiscate debtors’ assets and even properties, even a citizen owes more than 300 euro to the Greek state.