The Deputy Minister of Finances Christos Staikouras announced this morning that the State’s outstanding debts have been reduced to 7.3 billion euros, from 8.2 billion euros in December 2012, marking an 11% reduction. Outstanding tax returns were estimated to by 62% to 278 million, down from 724 million in December 2012. In total, the State’s outstanding debts were reduced by about 1.7 billion euros.
Since December 2012 the Ministry has completed the funding of 80% of ministerial applications, worth about 4.2 billion euros. A further 1.1 billion’s worth of funding applications is currently being evaluated. In May, the Ministry paid out about 700 million euros, meaning that about 2.9 billion euros has entered the real economy.
In the first five months of 2013 more than 10,300 lump sums have been paid out to civil servants, about 70% of the Army Pension Fund and military hospital’s outstanding debts have been paid as well as 50% of the National Healthcare System’s obligations (about 567 million euros)
Mr. Staikouras noted that bureaucratic problems persist, “since this a profound procedure involving many State institutions”. The Deputy Minister explained that “the goal is for the State to fulfill its obligations and improve cash flow in the real economy, without creating a new generation of outstanding debts”.
