With Greece’s government coffers dwindling by the day, nervous creditors have been watching each and every debt repayment and monthly wage bill closely for signs Athens has finally run out of cash.
But despite many predictions the country should have gone bust by now, the Syriza-led government has managed to scrape together enough funds to pay its creditors – including a €200m payment to the International Monetary Fund that was due today – and, despite some hiccups, the pensions and salaries owed government workers as well.
Some of that cash has been found in the bank accounts of independent government agencies, and more recently the government has been trying to raise additional funds by pooling unused reserves from local municipalities – a move that has generated considerable backlash.
But under the radar, the Greek government appears to have found a different, more traditional way to raise extra money: it’s collecting more taxes and spending less money.
According to data released just over a week ago – which was widely overlooked, since it was published the same day as a highly-contentious meeting of eurozone finance ministers in Riga – the Greek government is actually doing even better than it was a year ago in tax revenues, spending reductions, and primary surpluses. Read more