State Debt Mounting as Bailout Review Is Delayed


There is no end in sight for the mounting dues the state owes to both the market and taxpayers causing congestion in the market and for businesses in Greece.

With a total of some 5.05 billion euros owed to both the market and taxpayers, the state is not making any headway on paying back its debt. Kathimerini reported that the government has “effectively stopped paying its dues to third parties.” This means that the debt the state continues to incur is mounting and equals some 1.256 billion euros in outstanding tax rebates, with an additional 2 billion euros in rebates waiting to be processed for approval — and the debt just keeps growing.

A main factor in growing debt is that the longer the bailout review is at an impasse means that the release of the next tranche is further delayed. This ultimately results in incurring more debt that the state does not have any financial means to pay off.