Image: infomatique
Greece is now facing the critical possibility of shortage of funds to meet the basic needs of the state, causing intense fear within the government, which prepares scenarios of gradual suspension/postponement of payments in order to ensure sufficient funds for salaries and pensions.
After the interruption of negotiations with the Troika last week, the postponement of disbursement of next €8 billion tranche is possible. Government officials note that available funds are sufficient to meet basic needs until the end of the month.
One of the scenarios is the gradual payment of the sixth aid instalment. In case disbursement decision is made in October, a smaller amount would be given to Greece for the repayment of Greece’s debt abroad. This move is interpreted as a way to press Greece implement interventions of the memorandum of understanding and bypass growing intragovernment reactions.
The Troika returns in Athens on September 14 for the final assessment of the country’s progress. The small amount raised at the auction treasury bills this week, refueled concern within the government, which plans a new auction of €2 billion T-bills next week. But even this amount won’t be enough for all payments, and a rollover of payments is prepared. The priority is on salaries and pensions. Thus, the payments to suppliers, contractors, constructors and subsidized organizations would be suspended.
After the interruption of negotiations with the Troika last week, the postponement of disbursement of next €8 billion tranche is possible. Government officials note that available funds are sufficient to meet basic needs until the end of the month.
One of the scenarios is the gradual payment of the sixth aid instalment. In case disbursement decision is made in October, a smaller amount would be given to Greece for the repayment of Greece’s debt abroad. This move is interpreted as a way to press Greece implement interventions of the memorandum of understanding and bypass growing intragovernment reactions.
The Troika returns in Athens on September 14 for the final assessment of the country’s progress. The small amount raised at the auction treasury bills this week, refueled concern within the government, which plans a new auction of €2 billion T-bills next week. But even this amount won’t be enough for all payments, and a rollover of payments is prepared. The priority is on salaries and pensions. Thus, the payments to suppliers, contractors, constructors and subsidized organizations would be suspended.
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