Troika pushing for repayment of 6 billion euros to individuals

The economic team is struggling to pay 1.2 billion euros this week in wages and pensions, and to find money for bonuses and salaries by December 16, but they also have the Troika in mind, which pushes for payment of at least half of the almost 6 billion euros the state owes to individuals.

As the sixth tranche is delayed - it should have been collected in September - the State is creating problems for individuals, putting obstacles or stopping almost all payments for 3 months. These debts have accumulated under the carpet and now reach 6 billion euros (plus 500 million for the Public Investment Program), although there is a term in the memorandum expressly forbidding delays in State payments to individuals.

To cover the debts the government must:

•  receive the 6th tranche even by mid December
•  implement the PSI with a haircut at 50% to save 3.5 to 4 billion annually, which otherwise would have gone
   to  interest. The implementation will come partially (300-500 million per month) but it will actually start in February
•  make sure everything goes well after the agreement of October 26, in order to receive an additional 30 billion euros

First in line to be “settled” are suppliers of hospitals, ministries and insurance funds. The winners in the case will be pharmacists, pharmaceutical companies, fuel companies and employees on hourly wages in the public sector. In the event that all three conditions are met, the government may eventually allow the offsetting of tax debts with its debts to taxpayers and businesses (eg from refunds of taxes and subsidies).