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Greek Gov't Handouts to Pensioners, Islanders Not Discussed With Creditors

pensionersThe Greek government has not asked for the creditors’ approval to give out 617 million euros to low income pensioners because the money comes out of the surplus, said State Minister Alekos Flabouraris.
Speaking on Alpha television on Friday morning, Flabouraris said that the government has a primary surplus of about 1 billion euros for 2016 and Prime Minister Alexis Tsipras has decided to keep his pledge and distribute it to low income pensioners. At the same, he said, he lowered VAT on the islands that are hit hard by the migrant influx.
So far there hasn’t been an official reaction from Brussels regarding the action. German newspaper Suddeutsche Zeitung wrote that, “This move is expected to irritate, at least, the creditors of the country in debt.”
According to Bild, “Mr. Tsipras has violated the agreements of the bailout program.”
Government spokesperson Dimitris Tzanakopoulos spoke on Star television on Friday, saying that creditors are aware by now about the bonuses given to pensions and the VAT decrease for Aegean Sea islands, but there hasn’t been any official reaction.
When asked if Greece’s creditors disapprove of the bonuses, Tzanakopoulos said that the prime minister will not take the bonuses back.
 

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