Monday October 20, 2014 Search
Weather | Athens
29o C
20o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Uncertainty results in big contraction of public revenues

By Prokopis Hatzinikolaou

Political uncertainty is now hurting public revenues too, as in the days following the election they have declined by 28 percent compared to the level registered in the first week of May, and by 38 percent compared to the same period in May 2011.

Both individuals and enterprises appear very reserved about settling their tax affairs, which is having a direct impact on the state’s cash inflows. Therefore after the country’s creditors suddenly decided to slash the 5.2-billion-euro tranche expected yesterday -- which will affect the rate at which the state will service its current needs -- the Finance Ministry now has an additional worry.

On Thursday the European Financial Stability Facility disbursed 4.2 billion euros for Greece, which went straight into the escrow account with the Bank of Greece that serves to repay the country’s debts to its official creditors. The remaining 1 billion euros from the tranche will possibly be disbursed by June, the EFSF announced on Wednesday.

The problem with the revenues is greater given that already in April they had registered a 13.4 percent decline year-on-year. These developments, along with the election results, led a top official at the Finance Ministry to warn that unless a government is formed to negotiate with the country’s creditors, there will be a serious cash problem from the end of June.

Officials at the State General Accounting Office estimate that by just paying salaries and pensions (as the government had done last October), cash reserves will only last until the end of July, and that is provided that revenues dol not crumble and spending is contained.

ekathimerini.com , Thursday May 10, 2012 (23:09)  
Banks expect conditions to turn in their favor
Firms assure their investors they are turning a corner
‘One-day’ milk becomes bone of contention
Carrots to be added to repayment plans
Targets for troika review move back onto agenda
With Greece and its lenders seemingly finding common ground on how to conclude the country’s bailout at the end of the year, attention is now due to switch to the conclusion of the latest tr...
Public order minister to seek US help on intelligence
Public Order Minister Vassilis Kikilias is expected to seek closer cooperation with the US on fighting terrorism and dealing with irregular immigration when he travels to Washington next Fri...
Inside News
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
SOCCER
OFI stuns Panathinaikos, Mitroglou hits twice
OFI Crete produced the upset of the week in Greek soccer beating Panathinaikos in Athens for only the second time in its history on Sunday, while PAOK stayed on top beating Atromitos at home...
Inside Sports
Greece’s closed society is central to its current malaise
I started writing my book “The Thirteenth Labour of Hercules” a couple of months after the June 2012 elections in Greece. In that nail-biting showdown, a bruised and battered electorate narr...
COMMENTARY
Between West and East
The crisis that has been buffeting Greece in recent years has perforce turned the focus of domestic politics to developments in Europe. The nation’s attention, thoughts, relationship-buildin...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Reds lose to Nea Kifissia, search for new coach
2. OFI stuns Panathinaikos, Mitroglou hits twice
3. Banks expect conditions to turn in their favor
4. Firms assure their investors they are turning a corner
5. ‘One-day’ milk becomes bone of contention
6. Targets for troika review move back onto agenda
more news
Today
This Week
1. Banks expect conditions to turn in their favor
2. ‘One-day’ milk becomes bone of contention
3. Firms assure their investors they are turning a corner
4. Greece’s closed society is central to its current malaise
5. Turkish order for Cyprus EEZ coming into effect
6. Public order minister to seek US help on intelligence
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Less haste, more focus
3. Greece to contribute 1 mln towards Gaza reconstruction
4. Greece nearing bailout exit, says gov't spokesperson after IMF talks
5. Istanbul skyscraper casts shadow over Greece's banking ambitions
6. Coalition shooting itself in the foot
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.