Private sector still waiting for state to pay old debts

Private sector still waiting for state to pay old debts

Officials at the State General Accounting Office are scrambling to pay off the state’s dues to the private sector by the deadline, which is a necessary condition for the disbursement of the subtranche of 800 million euros by the creditors.

The economy is desperate for some cash and the 800 million has been available since September 1. However, the disbursement will likely be approved just before the October 31 deadline due to procedural delays by Athens. The Finance Ministry must produce proof to the creditors that it has paid its expired debts of 1.2 billion euros by the end of October, so the payments must be made by end-September.

A senior ministry official said on Tuesday that “there is no serious problem” and “the amount will be covered within this month.” Of the 1.2 billion euros, 400 million will have to come from national resources and the rest from the creditors.

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