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PASOK sinks in debts: €110 million loans in one decade!

There stuns the average Greek and possibly also the former PASOK voter: in less than a decade, year in, year out, Greece’s socialist party spent 10 million euro more than it could ‘earn’ and took loans generously given by the banks with the effect that the current debt stands at 128 million euro.  Back in 2003, a year before Costas Simitis stood down for George Papandreou to take over the party leadership the debt was 18 million euro. This was revealed on Thursday by PASOK leader Evangelos Venizelos after an audit carried out on the party’s finances for the period 2003-2013.

The party spend 30% more than it earned, the auditors report said, and took loans of 10 million euro in an annual basis. That is, the party had revenues of 20 million per year but spent 30 million. With interests, the total amount is 128 million.

Where did all this money go taking into account the party does not pay its employees since almost one year, it does not pay its share on social contributions – and most probably does not pay utilities and rent.

“The Socialists have reportedly been unable to pay the 35,000-euro monthly rent for the headquarters at Ippocratous street for the past few months. The rent at the Harilaou Trikoupi offices is reportedly 5,000 euros a month. PASOK continued renting the premises, even after it moved out in 2008.” (ekathimerini)

Little information has come out in the press. Last night I heard a journalist claiming on Skai TV that 53 million euro were spent to carry voters living away from their election districts.

Others claimed that the money was spent on travels for then party leader George Papandreou and for whatever other reason.

Some others claimed also that there were not adequate number of receipts for expenditures,implying that the money disappeared for personal uses.

Claims here and claims there, fact is that the Greek banks generously fed the party with money all these years, with sole loan collateral the state subsidize to the political parties.

Money that the taxpayers either paid through the subsidize or still pay and will pay for the banks recapitalization. Not to mention that the doors for the average businessman are closed for a loan of even 10,000 euro.

Fact is also that neither the party leadership and/or the management will ever be held politically accountable for this acts, neither the banks that gave the money. Media reported that PASOK has loans to three banks.

George Papandreou was right in 2009 elections when he was claiming “There is money!”. He was just too fool – to say it polite- and could not or was not able see that the money was loaned and had to be paid back.

60,000 euro per year rent for an empty building? Almost half a million euro rent in times of economic crisis? If that’s not grandiose delusional disorder, I wouldn’t know what it is… But certainly this management is a good example about how good the country’s finances could be managed – not!

Inner party consequences

Nevertheless, the scandal finances of PASOK, the unsustainable loans and the audit called by Venizelos are going to deepen the gap between the former and the current party leader. It’s the chance for Venizelos to get rid of Papandreou once for all.

“Papandreou has been irked by the audit and some reports alleging extravagances during his time at the party’s helm. Venizelos, however, insisted that shedding light on PASOK’s finances was necessary for the party to move forward. “Unity comes through transparency and the truth,” said Venizelos, who added that Papandreou should take legal action if he feels he’s been slighted.”(ekathimerini)

The final report of the auditors is yet to be concluded.

Venizelos has to push for a “party austerity program”, with radical expenditure cuts and even moving the headquarters to a smaller building. But paying back the debt is impossible, considering the heavy election losses of the party and subsequently the decrease of state support in the future.

Most possible some of the debt will have to be written-off with the blessing of the usual … suspects.

Some PASOK official expressed discontent over the party’s finances  claiming “the leakages to the press harm the image of the party”.

Main thing is to keep the facade LOL

Of course, in this country here, politicians and political parties hardly face any consequences. But the state demands from the little devil with a debt of 30,000 euro to sell his home in order to pay his debt. Not to mention the confiscation of properties and assets if this stupid Greeks cannot pay back his loans to the banks.

PS I wonder if a similar audit would take place in Samaras’ Nea Dimocratia which allegedly has debts of 120 million euro.



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  1. Little wonder that they ran the country in the same way, taking on unrepayable debt which benefited individuals as well as the Government, at a price which will ultimately be paid by every tax-payer in Greece.

    Spam Protection: Sum of 8 + 10? 18, or if PASOK, 14+borrow4