The sixth aid tranche of €8 billion euro is still in the air. It was supposed to arrive in Greece in September. Beginning of November things are still unclear. The Greek government is confident, the 6th aid tranche will arrive the moment Papandreou and Samaras officially the new government, but Greece’s lenders are wary. They insist on a government a little more ‘permanent’ than Papandreou-Samaras agreed upon. Greece has allegedly liquidity until December 10, 2011. But pensions and unemployed allowances have to be paid, a little more than the usual due to Christmas bonuses. So three Greek Insurance Funds Seek 1,5 billion euro until late December.
“Social security officials said that Greece is playing with fire, regarding the delay of sixth instalment disbursement, as they estimate that an additional amount of more than €1.5 billion would be needed until late December.
The three largest pension funds IKA, OAEE and OAED face the risk of lack of liquidity that would result in non-payment of pensions on time. Every month, the organizations exhaust all means of borrowing in order to avoid suspension of payments.
According to sources, OAED will be forced to use the single Greek bond it holds and matures in 2011, before the haircut, in order to pay unemployment benefits and allowances. The organization seeks at least €300 million to meet obligations in December, while IKA owes OAED about €5 billion.
IKA has placed its hopes in the release of the sixth instalment. The administration of the fund, which sees revenue slide, anticipates a state aid of €1.1 billion, which will be part of the €8 billion tranche. IKA has signed three loans of €430 million (€200 million from repos, €130 million from IKA supplementary fund, and €100 million from PPC insurance fund).
OAEE seeks approximately €200 million by the end of 2011.” (source: Capital.gr)
Thank you for posting this. Everyone can count the numbers here but where is the growth of the economics even Greece will get the money and the haircuts needed to pay some of the money back to EU from EU? Now there´s a cataclysmic situation that is a fools game.
Greece is totally living now of borrowed money. And that 6th tranche is a total must now. But all that time Pap and Sam are fooling around, like the two little kids they have shown to be. Instead of stopping the pensions if the money runs out because these two like playing petty games so much, we should stop paying their ‘salaries’ and bonuses and deduct a month pay an hour for every hour they take, retroactively.