Greece’s economy seems to have reached its lowest point, as the Greek government is unable to pay 4.4 billion euros to its suppliers.
Meanwhile, the Greek insurance funds are facing the same problem with administration striving to find more resources. Over the next few days Greece needs to gather a total of 2.3 billion euros in order to pay pensions on May 29 and June 2.
It has not yet been determined whether the country’s Finance Ministry will be able to find the 900 million euros that need to be provided to the Labor Ministry. The rest will come from loans, adjusting debts and insured citizens’ contributions.
According to data from the state’s General Accounting Office, the state is struggling because of the significant revenue reduction. In fact, during the first quarter of 2015 the funds showed a primary deficit totaling 349 million euros, (the primary surplus in the same period of 2014 amounted to 798 million euros).
At the same time there is swelling of overdue government obligations that exceed 4.4 billion euros, due to Greece’s internal payment suspension. The government debts, however, are much higher, because the figures do not include the state debts of the last 90 days, during which the economic situation worsened. The obligations to third parties that remain unpaid after 90 days from the due date are considered overdue.