HELLENIC MINISTRY OF FINANCE

There are total guarantees of 23 billion euros and a possible integration into the debt would lead to a large increase in it, which at the end of June amounted to 387 billion euros.

According to the draft budget report, a key factor in boosting economic activity in 2022 will be the Greek Recovery plan, with spending from the fund forecast to exceed 5 billion euros per year by the end of the implementation period.

As Staikouras pointed out, the recovering economy, with a higher growth estimate of 5.9% this year, which, in fact, he claimed may prove to be conservative, offer the possibility for a series of measures that will help households and measures.

Finance Minister Christos Staikouras, together with Alternate Minister Thodoros Skylakakis and Deputy Minister Apostolos Vesyropoulos, said that the abolition of tax on parental gifts of property, cash and shares of up to 800,000 euros was a measure promoting growth.

Minister of Finance, Christos Staikouras, said earlier this week that the ministry and PDMA have started looking into creating a framework for issuing green bonds, adding that the first issue will be part of the state’s lending strategy for the next year.

Although the Finance Ministry believes that GDP data in the first quarter (-1.6% and -0.9% on an annual basis) was not "catastrophic, nor extreme", concerns remain about the economy's productive base and consumption.s pointed out by officials, the keys to development are tourism, construction, investment, and the scope for the government to intervene in order to stem the crisis.

According to sources, the first step will be to reduce special allowances paid to employees, the self-employed, and small businesses that will enter the production process while simultaneously removing the state subsidy for all pension fund contributions. This way, the fiscal cost will be limited and the derailment of the budget will be controlled, reducing the drain on state cash reserves. Another factor pushing the Finance Ministry to change policy is the fact that resources available are not enough to finance such a high bill.

Greece raised 1.5 billion euros from the reopening of a 10-year bond issue, with the yield of the bond set at an historic low of 1.5 pct. What is more important is the increased participation of institutional investors in the bookbuilding process that markedly limited the participation of hedge funds.

A number of fund managers believed recently that Greek banks had turned the corner and started building positions in the sector. But most of them now looking over their portfolios in disappointment, realizing that there is a massive gap between preparing a proposal that will improve the balance sheets of lenders and implementing it. What did go wrong.