According to figures from the Public Debt Management Agency (PDMA), the government of Greece has been relying on repurchase agreements, or repos, in order to meet financial obligations, causing a negative impact on the liquidity of the banking system.
The figures published in Kathimerini show that the Greek government’s reliance on repos rose by 1 billion euros in the second quarter of 2016, as the government has been using repos as a “quick method of borrowing,” particularly since last summer of 2015 when the liquidity in the banking system was struggling, according to the paper.
According to PDMA the amount of repos has risen considerably over the past few years. The figures show that at the end of 2014, the total amount in repos came to 8.6 billion euros while it rose to 10.5 by June of 2015. The increase this year has continued reaching 11 billion by late March 2016 and as of August is reported at 12.1 billion euros.