2 bln euros in the market by the end of February

The process of repayment of overdue debts of the Greek State to individuals is moving at a rate of 1 billion euros per month, providing significant relief to the market and businesses that were stifled by the "interest free loans" the government kept taking from them, depriving them of payments for at least two years.

The lion's share consists of the payment of salaries and pensions, as the State has already paid nearly 2,500 lump sums to civil servants and the dividends of beneficiaries.

So far, the FinMin has approved the payment of private claims of about 1 billion euros. It is also proceeding with the refund of extra tax amounting to 553 million euros. The funding claims, which will be completed by the end of February, are estimated to reach 3 billion euros.

Deputy Finance minister Staikouras said the progress so far shows that the government will achieve the target of a debt repayment of 3.5 billion euros by the end of the first quarter of 2013. "So, we are responding as best as we can to the vital need for liquidity in the economy. The evaluation of applications will be done methodically, intensively, with transparency and under strict rules."

Many businesses will never get back all their money

The Greek government also plans a haircut on its debts at 1.2 billion euros. According to reports, the plan to repay State debts stopped at 8 billion euros. It seems that the government aims never to pay the remaining 1.2 of the total 9.2 billion euros the State owes to individuals.

The government's plan is to pay 5 of the 9.2 billion euros in the first half of 2013, 6.5 billion in the first 9 months and a total of 8 billion euros by the end of the year.

Thus, it will never pay the full amount of State debts, as it will follow along the lines of the haircut to the debts of pharmacists (3.5% on average). The haircut of its debts to suppliers, mainly in the Health sector, will range from 2% to 15% according to estimates by the General Accounting Office.