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Greece Able to Pay only Salaries & Pensions

Does the Greek state owe you money? You’d better forget about the payment – I hope for the time being… Then Greece apparently faces shortage of funds, the possibility of the 6th bailout tranche ( eight billion euro) is in the air, and national media reported recently that Greece has money until October 15th 2011. This morning I heard the IKA, biggest insurance & pension fund, governor assuring that there will be no problem with paying the pensions. Unfortunately the workers’ contributions have vanished in the air of dark corridors and false investments, and the pensions are now financed through taxes! No wonder the salaries for newly hired civil servants will start with just 750 euro gross per month.

Read this interesting article “Greece Able to Pay only Salaries and Pensions”:

Greece is now facing the critical possibility of shortage of funds to meet the basic needs of the state, causing intense fear within the government, which prepares scenarios of gradual suspension/postponement of payments in order to ensure sufficient funds for salaries and pensions.

After the interruption of negotiations with the Troika last week, the postponement of disbursement of next €8 billion tranche is possible. Government officials note that available funds are sufficient to meet basic needs until the end of the month.

One of the scenarios is the gradual payment of the sixth aid instalment. In case disbursement decision is made in October, a smaller amount would be given to Greece for the repayment of Greece’s debt abroad.

This move is interpreted as a way to press Greece implement interventions of the memorandum of understanding and bypass growing intragovernm

ent reactions.

The Troika returns in Athens on September 14 for the final assessment of the country’s progress.

The small amount raised at the auction treasury bills this week, refueled concern within the government, which plans a new auction of €2 billion T-bills next week.

But even this amount won’t be enough for all payments, and a rollover of payments is prepared. The priority is on salaries and pensions. Thus, the payments to suppliers, contractors, constructors and subsidized organizations would be suspended.

source: Capital.gr

I hope, the state will do pay the VAT returns to entrepreneurs, though….

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