Athens, October 16, 2015/Independent Balkan News Agency
By Spiros Sideris
The dependence of Greek banks by the European Central Bank liquidity mechanisms (ECB) has reduced even further in September.
As can be seen from the figures of the Bank of Greece, the dependence of Greek banks from the emergency liquidity mechanism (ELA) at the end of September fell to EUR 82.4 bn, from EUR 84 bn at the end of August. Accordingly, the direct financing by the ECB fell to EUR 39 bn from EUR 40 bn.
Their total dependence consequently decreased to EUR 121.4 bn from EUR 124 bn at the end of August.
This reflects the gradual normalisation of the situation regarding deposits, combined with the continuing decline in lending.
EUR 5 billion “hole” to state revenues up to September
The State Budget is spiraling out of control, and in order to come back on track, EUR 19.2 bn need to be collected by the end of the year.
And this is the positive reading of the figures announced by the Ministry of Finance, based on the revised downward target set in the draft of October and not the original that was designed in November last year. The announcement of the Finance Ministry is still based on the target that had been set in September, and based on that, the government would need to come up with EUR 21.5 bn instead of EUR 19.2 bn.
What remains unchanged is how low sank in September the revenues that went to state coffers. Based on the original objective of the budget, according to the ministry, the “hole” in government revenue for the first nine months will grow to almost EUR 5 bn!
Worse yet, as the end of the year approaches and the margins to suspend payments narrow, government spending that had been frozen since the beginning of the year have started to grow, just by paying salaries and pensions.
According to the communication of the Ministry of Finance, however, based on the provisional implementation figures for the state budget for the period January – September 2015, there is a deficit in the balance of the state budget of EUR 1,897 bn, against a deficit of EUR 2.285 bn in the respective period of 2014 and the deficit target of EUR 1,363 bn. The primary balance stood at a surplus of EUR 3.079 bn, compared to EUR 2.532 bn primary surplus for the same period in 2014 and the target for a primary surplus of EUR 3.644 bn.
The amount of net revenue of the state budget amounted to EUR 34.296 bn, down by EUR 4.915 bn, or 12.5% of the target.
Net revenues of the ordinary budget amounted to only EUR 32.227 bn, down by EUR 4.604 bn, or 12.5% compared to the original target, of which EUR 1.724 bn refers to the shortfall in revenue from transportation efficiencies of holding the Bonds of SS in the portfolios of central banks of the Eurosystem (ANFAs & SMPs), as well as EUR 1.544 bn from the non-collection of the installments of ENFIA.
In addition, tax refunds to individuals, citizens, etc. amounted to EUR 2 bn, decreased by EUR 399 mln against the target (EUR 2.421 bn).
PIP Revenue amounted to EUR 2.069 bn, down by EUR 311 million against the target.