Greece orders raid on government coffers as cash dwindles

Government issues a decree forcing all state bodies to transfer funds to the central bank

The Greek government has ordered a mandatory transfer of cash reserves from state-owned enterprises to its central bank, in a desperate bid to gather enough cash to remain solvent.

Citing “extremely urgent and unforeseen needs”, the government issued the decree which will also apply to local government authorities.

The move comes as Athen’s cash crisis degenerates with every passing day. 

Negotiations with the country’s lenders have have been moving at a crawl recently, and remain a long way from the finish line, according to the International Monetary Fund’s Europe chief.

The decree, which would violate fiduciary obligations, could help the government meet its monthly €1.7bn wage and pension bill and avert bankruptcy.

Full article: Greece orders raid on government coffers as cash dwindles (The Telegraph)

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