The 30-million June tranche hangs by a thread

Our country is entering a hostage situation, as political developments are blocking the loan tranches. With the clipped tranche of 4.2 billion euros (instead of 5.2) it received on Thursday, the Greek government is at its limit for this week, while the next tranche of 30 billion that would have been collected in June, of which at least 1.5 billion would have been thrown into the market to pay off debts to enterprises, is now hanging by a thread.

Of the 30 billion euros, IMF refuses to pay the 1.3 billion which is its share because the internal rules prohibit such a move without prior evaluation of the viability of the Greek debt.

Thus the amount expected by our country drops to 28.7 billion euros, the largest part of which would have been used to cover immediate capital needs of banks and businesses:

-          23.5 billion are for capital required by banks, which together with the 25 billion they received in April and another 1.5 billion they were originally assigned by the PSI, they would have been strengthened by a total of 50 billion until summer to withstand the damage from the haircut

-          at least 1.5 billion would be thrown immediately to the market, of the total 6.3 billion owed ​​and not paid by the State to businesses. This amount is constantly increasing during the election period to meet current expenses, but at least half of it should have been paid directly by the State without wasting time, as it happens with the approximately 3-3.5 billion euros owed ​​for VAT returns

After these payments, the State would have used the remaining 5 billion to meet loan and other current needs for the summer.

And while the auditors are not coming back and the Greek State is not collecting, it must find solutions for a range of issues: it must be able to renegotiate the entire memorandum, decide what to do with the nearly 6.5 billion euros belonging to bond holders who have refused to participate in the PSI, find new sources of funding to support the restructuring of the Greek economy and its return to positive growth rates, as everyone now is saying that this is the only way to create jobs and for the Greek society to escape from the trap of recession and deficits.