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> Economy

FinMin doubts that SYRIZA government would have funds to govern

Where will they find the money without international creditors pumping an additional 7 billion euros into the Greek economy?

Newsroom January 13 08:35

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The Greek Ministry of Finance issued a statement claiming that the main opposition Radical Left Coalition (SYRIZA) would not have the figures to run the country from March onwards if it does not continue with the reforms program. The Ministry of Finance believes that the public sector could not gather over 4-5 billion euros from T-bills were the government to sever its agreement with its international creditors.

Current economic data for 2015 shows that the new government will need to find solutions for financing needs worth 17-22 billion euros to cover salaries and pensions as long as tax targets are met.

Bonds worth 4.6 billion euros mature in the first quarter while 31 billion euros mature in total for 2015. For this reason, it will be difficult for Greece to meet its obligations without a 7.2 billion injection to funds expected from the troika of Greece’s international lenders from the European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF).

ECO

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The Public Sector will need to make payments in February, the same month when Greece has to pay up interest for its 2-billion-euro debt. Another 1.5 billion euros will need to be disbursed in March so that the country can pay the first of three outstanding installments owed to the IMF. More installments, of the same height, are due in June and September.

Problems for the government are expected to escalate in July and August when the government’s economists need to find 17.585 billion euros to cover maturing bonds of five and 10 years duration.

Without aid from Greece’s international creditors, the government will have limited options in order to cover its demands.

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