Greek primary surplus in excess of EUR 3bn

Greek primary surplus in excess of EUR 3bn

 

By Spiros Sideris – Athens

In January-October 2014 the cash effect of the central government showed a deficit of EUR 2.25 billion against a deficit of EUR 9.074 billion in the corresponding period of 2013. Revenues marginally increased, while spending significant reduced.

The primary surplus of EUR 3 billion, explains the BoG to avoid any misunderstandings, results from the transfer of profits from greek bonds included in the eurosystem and the removal of the cost for the pay of arrears.

In particular, as stated in the BoG communication, in the period January-October 2014, the ordinary revenues amounted to EUR 38.391 billion from EUR 37.993 billion last year. This includes an amount of EUR 1.31 billion from the repayment of preference shares, and excludes EUR 62 million from the transfer of the Greek government bond yields from the central banks of the eurosystem.

Regarding the costs of the regular budget, including spending of about EUR 336 million relating to the repayment of arrears, as well as the cost of EUR 451 million relating to the participation of Greece in the European Support Mechanism, amounted to EUR 40.068 billion from EUR 47.904 billion in the period January-October 2013.

The primary balance of the state budget (EUR 3 billion surplus) remains in surplus when are included revenues from the transfer of yields of Greek government bonds from the central banks of the Eurosystem and the removal of income from the repayment of preference shares, as well as expenses relating to repayment arrears and the participation of Greece in the European Support Mechanism.