BUSINESS

State debts to companies drop, but outstanding tax rebates rise

TAGS: Economy

State debts to suppliers and taxpayers fell to 2.722 billion euros at the end of June as arrears of 372 million euros were paid off in June.

State entities owe their suppliers a total of 2.016 billion euros, against 2.388 billion euros a month earlier, while outstanding tax rebates rose to 706 million euros from 589 million at end-May.

The largest amounts are owed by the social security funds, which still have 912 million euros to pay, hospitals, whose tab comes to 359 million, and local authorities, with debts of 275 million euros.

Despite the relative decline in state arrears, there is still a long way to go before they are cleared, which the government has pledged to do by the end of the bailout program later this month.

Even if the debt-clearing pace continues as it is, it will take several months for that to happen.

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