Graph of the day: Greek government deposits
The Greek govenrment is not yet out of money. There is a staggering amount of misinformation about Greece. Again and again we have been told that Greece could not pay off its loans. This might happen in the future – when market parties like the ECB or the European funds, which clearly are part of the market, though not of the private market, continue to refuse to roll over old debts. In such a case, even a sizeable surplus does not Ensure a country the ability to honour its debts. There was however no reason at all to doubt this ability in the past months and even at this very moment, as there still is a lot of deposit money left, especially in the coffers of the central government. Ironically, this money of course also serves to fund Greek banks and if it’s used to pay off loans, the ECB will have to step in |(as Greece honours its debts. By the way – did the people who, at the moment, are furious that the Greek central government forces local governments to shift their money to the central also furious when the Portuguese and Irish governments, two austerity darlings, grabbed pension money of households?
Source: Bank of Greece.