Greece has money to pay bills until July 20: report

Wednesday 13 June 2012 11.05
Greece has just enough money to pay pensions and salaries until July 20
Greece has just enough money to pay pensions and salaries until July 20

Greece has about €2 billion to pay salaries and pensions until July 20, media reports said today.

Greece's Kathimerini daily did not cite a source.

But other Greek outlets which reported the story based the information on a briefing yesterday by the finance minister to radical left Syriza party. 

The finance ministry declined to comment on the reports. Greece is heading into a Sunday election which could lead to it leaving the euro zone.

Syriza's leader Alexis Tsipras has alarmed European leaders by threatening to tear up the EU-IMF multi-billion loan agreement that has kept Greece afloat at the cost of painful austerity reforms.

Greece's European peers have warned Athens in stark terms that further loan payments could halt if promised reforms, including an unpopular privatisation drive, falter. Should this happen, many analysts warn that Greece could be forced to ditch the euro and print its own currency to pay pensions and salaries.

The finance ministry said yesterday that state revenue was €666m short of target for the first five months of the year, compounding a shortfall of nearly €500m announced last month.

Syriza, which catapulted to second place behind the conservative New Democracy party at an inconclusive election on May 6, could win up to a third of the vote on Sunday, according to opinion polls. Neither party is expected to win an outright majority, and will need allies in order to form a government.