Friday April 25, 2014 Search
Weather | Athens
21o C
15o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Manna from heaven comes via cash reserves of state entities

By Sotiris Nikas

The Finance Ministry has located an unexpected source of liquidity in the cash reserves of various state entities, amounting to some 3 billion euros, which can be used as a cushion in case the government needs to cover any gaps in the countrys funding program.

The good news came after the States General Accounting Office asked all state companies and corporations, social security funds etc to draw up a complete account of their cash reserves. Much to everyones surprise, it emerged that thousands of state entities have savings that add up to 3 billion euros.

For instance, the National Telecommunications and Post Commission (EETT) has, according to sources, cash reserves amounting to 200 million euros. These are funds that are not invested in the Bank of Greece but remain in the corporations coffers.

The Finance Ministry has drafted a plan for the utilization of these reserves given that they belong to the state. Senior ministry officials say the idea is not to rely on the cash reserves in the case that funding gaps should arise, but to use them as a cushion. Should the need to tap into them arise, the ministry can create instruments that the state bodies can invest in.

This will allow the government some much-needed breathing room in managing situations such as it is experiencing now, as bailout installments have stopped coming and its disposable cash has become dangerously diminished.

Through the use of the state entities reserves, the state will be able to cover its short-term needs (i.e. for 10-20 days or even one to two months) without requiring the approval of its creditors. At the same time, the scheme will not create any problems to the liquidity of the agencies as they will effectively be lending the money for just a few days.

This unexpected reserve of cash was located at the start of the year and has provided some relief to the government as its coffers begin running dry due to the delay of the bailout tranches from the last quarter of 2013.

ekathimerini.com , Sunday February 23, 2014 (20:47)  
Ellaktor lands major Doha metro project
World seeks produce from Greece
Eurobank opens book for capital increase
Govt presents its growth model for the coming years
Work at new Athens cultural center gathering pace
It was revealed on Thursday that the outer shell of buildings at the Stavros Niarchos Foundation Cultural Center should be completed by July 28. The planting of trees and shrubs on the 17-he...
Greece makes request for debt relief as loan tranche approved
Greece made its first official request on Thursday for further debt relief as the Euro Working Group (EWG) met in Brussels to rubber-stamp the 2013 primary surplus and approve the release of...
Inside News
SOCCER
4,000 officers to police Greek Cup final
Police says it will ban mass gatherings in central Athens amid heavy security measures planned for Saturday's Greek Cup final between Panathinaikos and PAOK at the Olympic Stadium. More than...
BASKETBALL
Never underestimate the Greek hoopsters
Olympiakos and Panathinaikos, who between them have won the last three European crowns, won again at home on Wednesday to take their Euroleague play-off series with Real Madrid and CSKA Mosc...
Inside Sports
COMMENTARY
At the mercy of fools
The death of a young man at an Easter lunch in a village near Rethymno on Crete and the very serious injury of an American guest at a Resurrection ceremony on Santorini must not be forgotten...
COMMENTARY
Putting the party above the country
The case of Sabiha Suleiman, the Roma activist whose candidacy for the European Parliament was announced by SYRIZA only to be withdrawn shortly afterward, is an illustration of the leftist o...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Ellaktor lands major Doha metro project
2. World seeks produce from Greece
3. Eurobank opens book for capital increase
4. Govt presents its growth model for the coming years
5. Work at new Athens cultural center gathering pace
6. Greece makes request for debt relief as loan tranche approved
more news
Today
This Week
1. Ellaktor lands major Doha metro project
2. Putting the party above the country
3. Three missing from cargo ship that went down off Crete
4. Central Athens cleanup a sign of Greece's turnaround
5. Strong card in debt talks
6. Samaras meeting with Dimon key to Greek return to bond markets
Today
This Week
1. Greece startup leaders say they cant break jobless cycle alone
2. Ground-breaking Good Friday mass signals thaw in Cyprus
3. Mayoral candidates clash over Athens mosque plans
4. Putting the party above the country
5. Government looks to kick on
6. Greece offers to help find Turkish F-16 lost in 1996
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.