The Minister of State Nikos Pappas admitted in Parliament that the government’s action to collect available cash reserves from local government and other public entities is “domestic borrowing”.
Mr. Pappas argued that there were “difficulties” in the negotiations, as Greece’s creditors have posed “unacceptable demands”, while stressing that the government is working hard towards coming to a solution.
Furthermore, he maintained that the creditors insist on new cuts in the pension system, which will not however solve any problems, since the pension funds are facing serious financial problems, unemployment is soaring and the country has a negative demographic profile.
According to the State Minister, the “dilemmas are ruthless” and opined that the liquidity problems stem from the insistence on the previous agreements.
