HFSF cash return brings state debt down by 11.4 bln

By Sotiris Nikas

The return of the Hellenic Financial Stability Fund’s (HFSF) cash reserves to the European Central Bank played a significant part in the quarterly reduction of the national debt in March by 11.4 billion euros.

The General State Accounting Office said on Wednesday that the general government debt fell to 312.7 billion euros, from 324.1 billion euros in December 2014, after the bank bailout fund returned over 11 billion euros left over from the recapitalization process.

However, the state’s cash reserves came to just 796.5 million euros at the end of the first quarter as the government spent 1.7 billion in the year to end-March to pay its obligations.