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Greek Gov’t – Troika deal sealed; PM distributes ‘primary surplus’ to vulnerable society groups

After seven months of tough negotiations between the Greek government and the representatives of the country’s lenders, the Troika, a deal was sealed on Tuesday. Right after the deal, Greek Prime Minister Antonis Samaras held a press conference where he announced where and how the primary surplus will be distributed among several groups of the austerity-ridden and tax-hit Greek society.

Distribution of “primary surplus”

PM Antonis Samaras announced to distribute part of the primary surplus primarily to vulnerable groups of the society:

  1. 500 million euro to one million Greeks according to income criteria. This is expected to happen in May and paid once.
  2. Distribution of unspecified amount to uniformed personnel with monthly salary below 1,500 euro.
  3. 3.9% reduction of social contributions both to employees and employers as of 1. July 2014. Contributions to social security will be reduced from 44% down to 40%. “The employee will pay 94€ instead of €100, the employers will pay €89 instead of €100 for example,” PM Samaras said during his live press conference.
  4. 20 million euro will be given to charities and foundations providing services to the homeless.
  5. At least €1 billion will be used from the state to pay its outstanding debts to private companies.
  6. Part of primary surplus will be used to pay back the country’s debt.

“There will be no additional austerity measures,” Samaras announced.

A staff-level agreement, that is a technical level agreement, is expected to be officially sealed in the afternoon.

PS I suppose, the Troika decided to facilitate Samaras to give some pre-elections presents to the poor, considering the risk factors a SYRIZA-win would bring to the loan agreements.

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