Greece Found a New Solution to Overcome with Crisis

• 04.22.2015, 01:06
•  Europe

Greece is running out of cash, but the country should repay also the International Monetary Fund nearly €1 billion in May. Greece has ordered its public sector to give hand to reserve cash in order to meet the payment to the IMF. Greek government set this decision right after president of the European Central Bank, Mario Draghi, publicly announced that Greece need to work hard if they want to receive the final part of bailout program, which is €7.2 billion, BBC reports.

Negotiations on April 24 will be very difficult between Eurozone members and Greece. Creditors have doubt over Greece that the country could default on its debts and exit the euro area. It is obvious that Greek government except country’s debt repayment needs money to pay government salaries and pensions.

The deal is clear between Greece and its creditors – European Central Bank, the European Union and the IMF; it should make repayments on time and introduce economic reforms in details.

Greece can see the real problem going to face soon and it is trying to find solution for that. The Greek government made the decree directed to public sector’s dealing. The government hopes to cover urgent needs of the state amounting to €3 billion for the next 15 days in order to pay the public dept coming soon close to deadline. But still the decree needs to be passed by parliament and to be approved. The decree includes all public bodies and local authorities except pension funds and some state-owned firms. This step is preliminary in order to be sure that they will be able to secure as much liquidity as possible. Beside this the country has some billions in cash reserves in the banking system.

The step is quite creative. The  amount of money they will hather does not matter, the most important thing is that it can become a solution for the situation. On the other hand, it is a way for Greece to prove its creditors that the country is trying to do everything in order to satisfy them. Whenever the decree will be approved by the parliament, the Greek reputation and creed towards the country will rise by its European partners.