(Greece) – According to the Alternate Minister of Finance, Giorgos Houliarakis, Greece is on schedule to pay around 5.5 billion euros worth of their outstanding state debts over the course of the net 18 months. He has said that he signed a ministerial decision that will enable the Greek central government to pay debts owed to certain third parities by the end of 2017.
According to the Greek newspaper Naftemporiki, the Ministry of Finance is on schedule to set aside around 3.5 billion euros in 2016 and an additional 2 billion euros in 2017. The funds will be used to pay off debts that have been generated by things like ministries, pension funds, hospitals, and the overall needs of the government.
Greece’s international creditors have said that in order to receive bailout payments, the government needs to find a way to reduce spending and increase revenue. The austerity measures that have been put into place have been designed to do that. Amongst the people, however, the bailouts and austerity measures have been controversial. The current government in Greece maintains that the bailouts and austerity measures have been necessary to get the country’s finances back on track.
Sometime in 2009, the Greek government realized they were having trouble paying off their mounting debt. They secured their first bailout in 2010, which was designed to help them get their debt under control. Recently, they just received their first payment from their third bailout. These funds will help them pay off loans balances that are owed to the European Central Bank and International Monetary Fund.
Greece’s debt to GDP rate reached an all time high of 180.1 in 2014. It was at 176.9 in 2015. The Greek government’s problems with their mounting debt began to surface in 2009 and the GDP to debt ratio had been increasing since then. Since 2014, it has been slowly declining.