Tuesday October 21, 2014 Search
Weather | Athens
24o C
11o 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 country’s funding program.

The good news came after the State’s 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 everyone’s 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)  
Think-tank says political uncertainty slowing investment in Greece
Tax debts to Greek state exceed 70 billion euros
Greek 2013 budget gap revised down to 1.8 pct/GDP
Greece said to seek tailor-made plan for bailout exit
Greek farmers warn they´re warming up for protests
Greek farmers are warming up for extended protest action, representatives of their unions warned on Tuesday after meeting in Larissa, central Greece, over the weekend. Farmers, who are compl...
Accomplice of Greece´s Number 1 fugitive arrested while trying to leave country
Self-styled anarchist Polykarpos Georgiadis, linked to Greece's Number 1 fugitive, was arrested at Athens International Airport on Tuesday while trying to board a flight to Brussels, in viol...
Inside News
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
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...
Inside Sports
INTERVIEW
The past, present and future of the Greek debt crisis
For a decade, until mid-2012, Josef Ackermann was the CEO at Deutsche Bank. It was a position that earned him the nickname “shadow chancellor” of Germany and allowed him to play a decisive r...
COMMENTARY
Self-opposing coalition
Even though a number of polls see the total percentage of the two ruling parties trailing that of SYRIZA, New Democracy and PASOK are still in government and the leftists in opposition. This...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek farmers warn they´re warming up for protests
2. Accomplice of Greece´s Number 1 fugitive arrested while trying to leave country
3. Think-tank says political uncertainty slowing investment in Greece
4. Trial over 2012 torture of Egyptian bakery worker in Salamina begins
5. Tax debts to Greek state exceed 70 billion euros
6. Greek 2013 budget gap revised down to 1.8 pct/GDP
more news
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Gang importing heroin into Greece busted
3. Self-opposing coalition
4. Gutsy rectors
5. Applications for heating oil subsidy set to start
6. SDOE to probe Proton Bank loan to Thessaloniki businessman
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Greece to contribute 1 mln towards Gaza reconstruction
3. Greece nearing bailout exit, says gov't spokesperson after IMF talks
4. Istanbul skyscraper casts shadow over Greece's banking ambitions
5. Coalition shooting itself in the foot
6. GPO poll gives SYRIZA clear lead over New Democracy
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.