State’s ex­pired debts keep grow­ing

Kathimerini English - - Focus -

The debts of the Greek state are con­tin­u­ing to mount, even though the Fi­nance Min­istry started pay­ing its ex­pired debts in the third quar­ter of the year.

Min­istry data showed that the state’s ex­pired ar­rears to sup­pli­ers and tax­pay­ers came to 6.2 bil­lion euros at the end of Septem­ber, post­ing a mar­ginal drop of just 58 mil­lion euros from end-Au­gust. This is de­spite debt pay­ments of 1.87 bil­lion euros con­firmed by the govern­ment to the coun­try’s cred­i­tors for the July-Septem­ber pe­riod. How­ever, data from the State Ac­count­ing Of­fice show that the state’s debts were only re­duced by 1.01 bil­lion euros dur­ing the same pe­riod, mean­ing that fresh debts of 857 mil- lion were cre­ated in the mean­time.

The re­cip­i­ents of state debt pay­ments use the money they re­ceive to pay taxes or to ser­vice their own debts to banks, as this has been the des­ti­na­tion of most of the 2 bil­lion euros of ex­pired debts paid to the pri­vate sec­tor this year.

Bank de­posits have in­creased by just 100 mil­lion euros since the start of the year de­spite the sta­bi­liza­tion of the econ­omy, the re­lax­ation of the cap­i­tal con­trols and the pay­ment of some state debts to third par­ties. In Q3, when the state paid off debts of 1.9 bil­lion euros, de­posits rose by just 770 mil­lion, as the rest went to­ward cov­er­ing the obli­ga­tions of cor­po­ra­tions and house­holds.

Data from the State Ac­count­ing Of­fice show that new debts of 857 mil­lion euros were cre­ated in Q3.

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