ECONOMY

Spike in public sector debt

The amount of public sector debt rose to 6.6 billion euros in June from 6.4 billion euros in May, according to official figures made public on Thursday.

The most indebted state institutions are insurance funds, who owe 2.6 billion euros, with state hospitals owing 1.8 billion euros, local authorities 892 million euros in debt and ministries owing 980 million euros.

The cash-strapped government has promised its foreign creditors ? the European Commission, the European Central Bank and the International Monetary Fund ? that it will slash public spending by merging hospitals and reducing the size of the bloated civil service.