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Greece: Primary Surplus of €1 billion in March; Internal Borrowing on the way?

An “explosion” in revenues in March 2015 created a Primary Surplus of 1.7 billion euro, Deputy Finance Minister Dimitris Mardas announced on Thursday. “The primary result is a surplus of 1.735 million euro,” The Greek Finance Ministry said in a statement adding that “the Primary Surplus target was 119 million euro, while in the same period of 2014, the PS was 1.541 million euro.”

Revenues in March were €4.23 billion against the target of €3.2 billion. the revenues increase has most probably to do with the arrears the Greek Finance Ministry offered to debtors.

The amount of net state revenues was 12.022 million euro, that is 95 million euro more than the target.

Revenues in March: 4.232 million euro, that is 1.022 million euro more or +33.5% of the target.

State expenditure was at 12.522 million euro, while the target was 14.038 million euro.

In the state expenditure,  KTG has spotted also 130 million euro for armament

According to Greek media, the debt settlement initiated by the finance Ministry and increased revenues from EU funds in March contributed to bring the budget back on the rails, after the significant revenue shortfall recorded in the first two months.

Now the Finance Ministry focuses on the performance of the regulation of 100 installments for debts to the state.

Greece races to meet its obligations at home and abroad, while its creditors insist on asphyxiating austerity measures in order to release the last bailout tranche of €7.2 billion.

Internal Borrowing?

In this context, Deputy Ministry Mardas reportedly left open the possibility to require compulsory transfer of available assets of public organizations and other bodies (social insurance funds, utilities companies and others) to the Bank of Greece, in order to be able to meet the state obligations through domestic borrowing (repos).

PS In the state expenditure,  KTG has spotted also €130 million for armament !?

Detailed Budget Revenues – Expenditure here – in Greek

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8 comments

  1. Only € 1.7 billion?

    After seizing the last remaining cash assets from the social insurances, pension funds and utilities? And collecting taxes that were withheld since November?

    Syriza is now upping the ante and goes all in: compulsory transfer of all available public assets to a state that is about to go bankrupt.
    Syriza is now tying the fate of the population to the fate of the government. Nice. If they are failing, everything is lost as all public entities are cash and asset strapped – for many decades. Nice. Just like in a banana republic of a dictator.

    Now let’s talk about growth perspective with not only the government in default, but also all public entities, utilities and their dependents.

  2. In the state expenditure, KTG has spotted also €130 million for armament !?

    Greece is negotiating with Russia for the purchase of missiles for its S-300 anti-missile systems and for their maintenance, Russia’s RIA news agency quoted Greek Defense Minister Panos Kammenos as saying on Wednesday.
    http://www.themoscowtimes.com/business/article/greece-in-talks-with-russia-to-buy-s-300-missiles–report/519193.html

    Does the madness continue or is this yet more sci-fi news reporting?

  3. In all fairness, if my reading of the results is correct, there was zero military procurement in the 1st quarter (on a cash basis). The 130 MEUR you cite was the original ‘estimate’, not the actual ‘outcome’. Almost sounds like the government deserves praise for spending less on military procurement than originally estimated. Or am I wrong?