The Bank of Greece (BoG) recently released data showing that the amount of state debt that Greece generates is mounting to figures that it is unable to pay off.
Despite the increase in taxes and new higher social security contributions, for every one euro that the state pays towards its debt, it generates new debts of 1.14 euros. BoG reported that in Q1 of 2017, the state managed to repay 432 million euros of its debt, however, in the first two months of the year the government generated 494 million euros of debt.
According to the State General Accounting Office, the total amount of the state’s expired debt amounts to 4.554 billion euros as of December 31, 2016, with figures jumping to 4.8 billion euros by the end of January 2017, and a further increase to 5.048 billion euros by end of month February. These figures make it all the more difficult for the state to fulfill its commitment in paying off all of its debt by June, 2017.
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