12th rating: Lenders harshly criticize Greek government for oligarchy and breach of commitments


Narrow marking by the institutions for outstanding pensions, overdue public debts to individuals.

The heads of the institutions in the financial staff exercised a suffocating pressure for the liquidation of the overdue public debts and the “stock” of the outstanding pensions in the context of the 12th evaluation.
According to information in the first close contact, the lenders harshly criticized the government for oligarchy and breach of commitments, noting that despite the initiatives and new actions, government bonds are still moving at levels of over 2 billion euros, depriving the market of valuable liquidity. .

According to the latest available data, last July the state owed the private sector 1.75 billion euros and an additional 547 million euros for tax refunds, ie a total of 2.3 billion euros.
The lion’s share is held by the hospitals with their overdue debts reaching 927 million euros, followed by the Social Security Organizations with 470 million euros with the unpaid pensions exceeding 200,000 or in amounts of 359 million euros.

The Greek side cited the pandemic crisis for the delays, which presented a detailed plan of interventions and moves to speed up the process of payment of debts, including outstanding pensions and tax refunds, assuring that by the end of the first half of 2022 it will be over. greater volume of liabilities. It is noted that based on the initial agreement with the institutions, the overdue public debts should not exceed 0.2% of GDP or 350 million euros on an annual basis.

The meeting also raised the issue of developments in the real economy with the financial staff estimating that the latest data on the course of GDP components show that the growth rate for the current year will exceed 6.5% and may break and the 7% barrier against a provision in the preliminary draft budget for 6.1%.
As the authorities point out, the acceleration of the recovery frees up additional budgetary space for the implementation of the “growth dividend” plan, adding that this is currently a political decision as the consent of the lenders has not been secured.

Institutions treat the measure with extreme skepticism, recommending restraint and careful moves to avoid fiscal adventures.
It is worth noting that the Deputy Minister of Finance Th. Skylakakis, when asked about the possibility of granting emergency income support to specific social groups, said characteristically that I would not propose such a measure with a deficit of 7.3% of GDP

Development funds, additional benefits remain on the table with the institutions and the landscape is expected to clear up next month with the submission of the final plan for the new budget. Another issue pending in the negotiations with the institutions is the new ENFIA that will be implemented in 2022 in order to neutralize the burdens of the increased objective prices in more than 7,000 areas of the country to taxpayers with low and medium value real estate.
The information states that there was no substantive discussion with the institutions as the financial staff has not reached decisions on the scope and type of interventions in scales and rates with sources to speak of an extremely difficult and complex equation.

Source: https://www.bankingnews.gr/

Previous articleIMF cuts Asia’s growth forecast, warns of supply chain risks
Next articleEXCLUSIVE: Amazon and Starbucks held talks about launching a cobranded lounge that combines cashierless Go stores with a café