ECONOMY

State dues in Jan-June reach 10 bln euros

state-dues-in-jan-june-reach-10-bln-euros

The government has imposed suffocating conditions on hospitals, suppliers and enterprises by stopping the flow of cash due to its inability to settle its debts. Meanwhile pensions are being paid via loans from one social security fund to another, though this may well not be possible at the end of this month due to the complete lack of liquidity.

Figures show that although the state should have paid out 4.5 billion euros last month, it chose to spend only 2.5 billion euros on salaries and pensions, leaving a gap of 2 billion euros in payments to third parties.

In total the state failed to pay dues of 4.6 billion euros to state entities and suppliers in the first half of the year, which in turn has deprived the market of cash, leading to it forfeiting its obligations to foreign suppliers and the Greek state.

If that amount is added to the expired debts of the state, the amount of dues the Greek state has to the market soars to almost 10 billion euros.