BUSINESS

State debts to third parties come to over 5 bln euros

PROKOPIS HATZINIKOLAOU

TAGS: Finance

The state’s debts to its suppliers are growing by the month, creating huge problems in the market and for businesses. In February alone the state ran up 243 million euros in fresh arrears, meaning that it now owes a total of 5.05 billion to the market and taxpayers.

The government has effectively stopped paying its dues to third parties, with over a quarter of the money it owes (1.256 billion euros) concerning outstanding tax rebates, while another 2 billion euros in rebates is ready to be processed for approval.

The state’s debts have grown by 1.2 billion euros since December 2014 and it appears that this figure will continue to grow as long as the completion of the bailout review and the ensuing disbursement of the loan installment are delayed, as the state cannot start paying off its dues until it receives that tranche.

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