The Greek government’s intention to give 1,000 euros each to one million citizens as a Christmas bonus, made creditors react and ask for explanations from Athens.
Earlier in the month, State Minister Christophoros Vernadakis announced that 1 billion euros will be distributed to one million low income Greeks as a Christmas bonus. The funds will come from the primary surplus the government will achieve by the end of the year.
In an interview to Efimerida ton Syntakton newspaper last weekend, Prime Minister Alexis Tsipras reiterated that a revenue surplus will be given as a social dividend to one million poor Greeks.
However, Greece’s creditors reacted saying that any State revenues in excess of the targets set should be allocated to State debts to the private sector and the issuance of pensions pending.
Furthermore, creditors want part of any overpayment to be used as a “liquidity pillow” for when Greece’s bailout program ends and the country will return to the international markets in conditions of stability.
The issue is expected to be the subject of a debate on Monday, when a new round of negotiations between Greece and creditors on the third bailout program review begins.
According to a Naftemporiki newspaper report, the Greek government is prepared to present lenders with a mixed plan that would include repayment of arrears to the private sector and development programs, and a part of the revenue surplus would go to the minimum income program and other social dividends.
Finance ministry officials say that creditors might accept a mixed distribution of the excess revenue and agree that part of the funds should go to social dividends.
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