Greek government financial position

Economy View

Lately there have been widespread fears that the Greek government might not be in a position to honor its debt repayments during March, which amount at €2.5bn (€1416mn in repayments to the IMF, €800mn in interest payments and €280mn in other obligations). Although I agree that things are getting quite tight, I do not think that a ‘failure to pay’ is imminent. Such an issue will emerge mainly during the summer (in July and August) when Greece will have to pay a total of €8.81bn (with the bulk belonging to €6.68bn of ECB SMP bonds which mature then).

Lets start from the easy facts. Greece will not be receiving any funds from the official creditors until a successful completion of the current review for the bailout package. This also includes €1.9bn in SMP profits which have already been remitted by the ECB to Eurozone countries. Moreover, the limit for short-term…

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