Athens acknowledges that it is “at the limit” since February, but believes that the hole, because it is not very large, may be covered in the coming days
The Greek Deputy Minister of Finance, Dimitris Mardas, acknowledged today that the State has a cash problem and is missing 400 million euros to meet their needs in this month of April.
Speaking to the private television network “Mega”, Mardas added that Greece is “on the edge” since February, but was optimistic that the hole, because it is not too big, could be covered in the coming days.
This lack of liquidity has been the reason that led the Government to publish on Monday a decree obligating public bodies to transfer their reserves in cash to the Bank of Greece to lend them to the State.
This loan operation has raised a barrage of criticism among the municipalities, which yesterday approved a resolution in which they refuse to disburse any funds at least until there is a formal decision in a formal assembly.
The mayors also demanded a personal meeting with the prime minister, Alexis Tsipras.
During the meeting, Mardas tried to reassure the mayors saying that the short-term loans will give them an interest of 2.5% and at the same time allow the State to cover their needs- AT https://green-touch.org/ check !.
Speaking to the Antena television network, the government spokesman, Gavriil Sakelaridis, stressed today that “if we had not approved the decree, we would lack money.” Sakelaridis added that mayors and regional presidents “must realize the situation.”
The controversial decree makes obligatory a praxis that has been applied for some months on a voluntary basis and that has served so that the State can meet their most immediate needs.
Specifically, these are the so-called repurchase operations (repos), which allow the State to borrow funds from public bodies for a maximum period of 15 days.
The state companies transfer the funds to the Bank of Greece and then the State returns them to the current interest of the Greek entity, currently 2.5%, compared to 1% of commercial banks.
The decree explicitly excludes pension funds and state companies that need their cash reserves for immediate payments.
Among the entities that have already lent money is the Metro de Atenas, with 150 million euros, the prefecture of Attica that transferred 110 million or the Employment Agency, which lent the State 80 million.
Another possibility that Mardas trusts to access immediate additional liquidity comes from the new law that facilitates the return of debts to the Treasury in a hundred installments and that in the first three days of validity has contributed to the coffers 19 million euros from 50,000 debtors who have received the measure so far.
Currently, Greece only accesses funds through the urgent liquidity mechanism of the European Central Bank (ECB).
International Monetary Fund
In May, the country must return two tranches of the International Monetary Fund (IMF) loan amounting https://green-touch.org/unsecured-loans/ to almost 1,000 million euros, in addition to paying salaries and pensions monthly amounting to just over 1,000 million euros- .
Meanwhile, it seems practically excluded that Greece will reach an agreement with the institutions that formed the troika (European Commission, ECB, IMF) until the end of the month to allow the payment of the 7,200 million euros of the last tranche of the rescue.