Debt crisis: Last Greece-aid delayed

The last tranche of the lending was already decided and approved. But now the Bundestag's Committee on Budgets must decide again.

Debt crisis: Last Greece-aid delayed

A decision by Greek Government on VAT delayed payment of last aid for once over-indebted country. In concrete terms, government does not want to increase VAT on five islands of Ostägäis to usual rate of 24 per cent in country, but at least by end of year at 17%. The special burden of islands in refugee crisis is given as a reason. Therefore, according to government data, 28 million euros are missing in Treasury.

The federal government sees this as a change in conditions for credit assistance that have been negotiated. That is why re is a new parliamentary reservation, although Bundestag had already decided last aid at end of June. Now Bundestag's Committee on Budgets has to deal with this once again.

The European Rescue Fund, ESM, once German procedure has been completed, will soon be able to pay out before end of aid programme on 20 August. The euro finance ministers and ESM board had already approved aid.

In Greece, delay was particularly criticised by commentators. The newspaper Ta Nea wrote of a "slap in sponsors". It was said from Ans Ministry of Finance that Minister Euclid Tsakalotos promised euro partners to offset 28 million euro with or cuts, primarily in case of armaments expenditure. The shift is not a big problem.

Greece has been protected from financial collapse since 2010 with international lending aid. From August onwards, country will be financially independent. But it remains with creditors ' controls. Because repayments of loans run. Germany has interest income by participating in loan assistance.

Date Of Update: 14 July 2018, 12:02

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