ECONOMY

Greek coffers in desperate situation

Even the 7.2 billion euros that the international bailout program provides for Greece to receive from its creditors by June would not suffice to cover the country’s dues to its lenders for the next four-and-a-half months, up to the end of August, which amount to 23 billion euros.

The sum due includes maturing treasury bills, which if covered in their entirety through new issues will reduce the amount Greece has to repay to its creditors to 12 billion euros.

In the short term the available cash is enough only up to April 24, unless a part of the bailout installment is paid in.

On Wednesday the state will issue three-month T-bills adding up to 1 billion euros to cover a respective set of bills that is about to mature. The only other major obligation in April is a 150-million-euro interest payment by the end of the month.

A major problem this month is that the country’s existing cash reserves do not appear sufficient to cover the second part of state sector salaries and pensions due. Officials say that things will be difficult unless more state entities invest in repos.