Overdue Debts to Private Sector Still Out of Budget

greek_debt_main-462007578-900x600The payoff of overdue debts to businesses and pensioners is still out of the budget. Up until the end of September the debts have reached nearly 6 billion euros and are estimated to exceed 7 billion euros by the end of the year.

According to budget reports, over the past 10 months (October-January) the private sector remained unpaid despite the disbursement of the largest sum from the first part of the new bailout loan from ELO.

For over a year now, this debt has created an extra problem of liquidity to businesses which interact with the public sector and must face capital controls and bank destitution. This is a topic that has been stressed many times by the technical echelons of the institutions which are visiting Athens.

During the first assessment of the Greek program this will be a topic which will be officially talked about, since the repayment of the debts towards the private sector is one of the basic terms of the new Greek bailout deal.