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IPFS News Link • World News

Denials Mount as Greece Robs Peter to Pay Paul; Shell Games and Check Kiting

• http://globaleconomicanalysis.blogspot.com,

Greece will need to tap all the remaining cash reserves across its public sector -- a total of 2 billion euros ($2.16 billion) -- to pay civil service wages and pensions at the end of the month, according to finance ministry officials.

Greece's finance ministry denied that it would need to tap remaining cash reserves to meet salary payments, without providing any figures.

"News agencies' reports that refer to the state's cash reserves are groundless, we categorically deny them," the ministry said in a short statement on Friday.

"This is the last bit of cash that the Greek state has," a senior finance ministry official, who requested anonymity, told Reuters.

For months, the government has been borrowing from different parts of the state administration, including the Athens subway system, to pay the wages and pensions of public sector workers. Now, however, it is reaching the end of the line.
 


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