Greek State to pay debts of 1 billion euros per month

 

It is estimated that almost 1 billion euros was channeled in the market from December to late February. The General Accounting Office approved funds of 2.27 billion euros for ministries and public bodies (in late February) to pay the individuals to whom they are indebted, while by the end of March it has approved a total of 3.68 billion euros (all debts from 2011 and only for now).

 

But the rates of payment by the ministries are much lower; however, starting from March they are expected to reach or exceed 1 billion euros per month. At present these payments concern debts to private individuals from 2011, while the Finance ministry is raising bureaucratic obstacles against the repayment of the beneficiaries, "snipping" in many cases the payment requests.

 

Specifically, based on ministry data:

-       funding of 211 million euros was approved for relevant debts in December 2012 (from the finmin to other ministries)

-       431 million was approved in January 2013

-       880 million in February

-       1.2 billion estimated to be approved by the end of March

 

But the beneficiaries are receiving the money from the ministries at a much slower pace:

-       just 47 million euros was paid in December 2012 (all for civil servants’ lump sums)

-       217 million euros were paid in January 2013

-       about 400-600 million euros in February

-       estimated to exceed 1 billion in March

 

As clarified by the FinMin, the delays will be reduced when the last legislative regulations for payments to private individuals have concluded.

 

However, the process is also delayed because the ministry has cut down on what it actually pays. While the Troika report on tax administration notes that refund requests to individuals reach 3 billion euros (1.7 billion for VAT and 1.2 billion for corporate income tax), the Greek government currently only sees VAT debts of 787 million euros, of which it has covered 745 million.