ATHENS Greece accounts for years that are red, and know full well his restless European partners. But red is now so intense that the government shook his piggy bank and went to rescue each existing currency in public bodies, without which you can not pay the salaries of public administration and pensions later this month.
According to Greek authorities, public sector reserves are 2000 million, scattered in various institutions. And all that, every last euro, will need to not let their employees with hand extended in line payments. “It’s the last little money left to the Greek state,” he said on condition of anonymity a senior Finance Ministry.
The Athens subway, local banks, suppliers, subsidies European Union … the eyes of the government counters detect targets and take what they can from the various entities. Sometimes in the form of loans, other as deferred payments. Suddenly purchases are considered expendable also canceled.
The “D-Day” is just around the corner. The monetary balance would be negative from next April 20 if the government does not get those millions of other deposits in various entities, including a handful of pension funds and regional administrations.
The fight for Athens achieve the extreme core funds shows that are financial constraints for prime minister, Alexis Tsipras, in his attempt to convince foreign creditors who deliver more financial aid. And, conversely, shows how difficult it is for creditors Tsipras access a reform plan, at its option, much larger.
That context of empty coffers and tickets will be absent for salaries greater than ever the meeting to be held today in Brussels between officials from Greece and its creditors, a new round of negotiations before the key meeting of finance ministers of the Eurozone, on Friday.
Officials Europeans already expressed their skepticism Greek previous warnings about his lack of funds. But recognize that the moment of truth, this time it is coming.
Yesterday, the European Commission (EC) expressed “dissatisfaction” over the lack of progress in negotiations with Greece over a complete list reform, and said he expects a turnaround in the coming days. Also US President Barack Obama pushed for Greece “initiate reforms” structural.
The Greeks, meanwhile, expected to be others who throw in the towel.
” The government is still optimistic about a deal before the end of the month. Europe must learn to live with disagreements, to summarize and move forward, “officials said.
The sources said a covenant with the -the creditors EC, the European Central Bank and the International Monetary Fund should be based on “respect for the country’s obligations at international level, building trust with the institutions, respecting the commitments of the government and its citizens.” They added that Tsipras remain impassable “red lines” in four sensitive points, especially, labor reform and pension system.
At the same time, thousands of Greek citizens who do not trust that Tsipras can get away with it, judging by his handling of money. in recent months withdrew large amounts of their bank accounts
The daily Kathimerini estimated that the Greeks saved 15,000 million euros in cash, due to growing concerns that Greece should leave the euro if the government fails to reach agreement with the EU. Last December, the level of deposits was over 160,000 million euros. In late March, had fallen to 135,000 million.
By early May, the government would have some relief from tax revenues, about 4000 million per month. But the financial pressure not lower, since Athens faces a new round of payments to creditors on May 12. There will have to pay 950 million euros to the IMF and return the problems with domestic commitments.
Warning
Even if you take hold of all existing resources, if Athens fails to reach agreement shall not pay 950 million euros to be disbursed to the IMF in May
Increases
According to the head of the department Europe IMF, Poul Thomsen, June, July and August the amount of payments that Greece must do increase significantly; future meetings will be decisive
Default
At the moment, the European side there is a plan B for Athens, so insist to the four winds that Greece accelerate its reforms at risk of falling into default
Damages
For the European Commissioner for Economic Affairs, Pierre Moscovici, a departure from Athens euro would “damage to the eurozone, the Greeks and the financial system”
- Agencies Reuters, DPA and EFE
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