BUSINESS

Arrears, NPLs, lack of cash hurt economy

TAGS: Economy

In its annual report on the Greek economy, the Public Debt Management Agency says that the main problems of the Greek economy remain the lack of liquidity, the state’s overdue arrears and the nonperforming loans of Greek banks.

The report notes that, “in the direction of dealing with the relevant weaknesses, the Greek government is focusing on the repayment of arrears to the private sector and management tools for nonperforming loans in the Greek banking system (secondary loan market, electronic auctions, out-of-court settlement mechanism).”

The report makes special reference to the repos and the cash of the general government entities that the PDMA attends to: This way, almost 75 percent of the available cash of those entities is utilized, offering competitive high yields and securing a benefit for the general government’s fiscal result, with a positive impact on the sustainability of the public debt.

The budget’s gross financing needs last year were covered by debt issues amounting to 34.64 billion euros, privatization revenues of 752 million euros, and 789 million euros in revenues from financial transactions, the PDMA said.

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