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The next tranche of Greek aid remains up in the air, and tax collections (surprise!) running vastly below expectations, so Greece is urgently trying to come up with a solution to fund itself as it sees its cash pile rapidly dwindling.Ekathimerini has a good report on the situation:
The public coffers are seen running dry at the end of June, but this will depend on two key factors. First, revenue collection: In the first 10 days of May, inflows were about 15 per cent lower than projected but there are fears that the slide may reach 50 per cent. The GAO will have a picture for the first 20 days on May 23, while the last three days of the month are considered crucial, when 1.5 billion euros of the month’s budgeted total of 3.6 billion are expected to flow in.
Second, whether the IMF and EFSF installments are disbursed: This is not certain, as the decision will be purely political for both providers and evidently partly linked to political developments. Earlier this month the eurozone approved a disbursement 1 billion short of the 5 billion euros that were expected.
Some of the options:
- Suspending various tax credits and rebates.
- Cuts in payments to the social security fund.
- Other trimming of grants to state agencies (a move which has been done before, and bought the country a few months actually).
- Not paying Greece’s contribution to the EFSF.
- Raiding the fund designed for bank recapitalization.