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Greece Close to Bankruptcy as Private Debt Is Higher than GDP

Greek deptGreece is on the brink of bankruptcy as private debt is higher than gross domestic product and rising, says a Greek Money report.
Private debt is higher than GDP and if the state debt is added to the equation, the Greek debt is unsustainable. All policies applied and measures taken, simply add to a “black hole” that can never be filled, says the report.
At this moment, debtors silently but steadily default since the lack of liquidity that strangles the Greek economy is spreading. Greeks see their income shrink and become unable to meet financial obligations.
The amount of non performing loans is currently 107 billion euros, while outstanding debts to the state have reached 72 billion euros. Adding to that 14.8 billion euros of outstanding debts to security fund contributions and another 2 billion euros owed to partly state owned Public Utility Company, and the total debt is higher than the country’s GDP.
The publication of state budget figures for January – September 2015 by the finance ministry, confirms a large and growing revenue shortfall, the unprecedented internal default, swelling of the arrears of the state towards its citizens and the collapse of public investments.
State arrears to individuals reached 5.1 billion euros at the end of August, compared to 4.955 billion euros the month before, according to General Government data released by the Ministry of Finance. The increase in arrears comes mainly from pending expenditures of the National Health System and hospitals.
The new omnibus bill that was voted in parliament comes to add a further financial burden on cash-strapped Greeks. According to the conclusion of the report, Greek people have reached a point where they cannot pay more taxes and contributions, thereby it is impossible for the government to ensure revenues from new taxes.

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