Sunday, May 27, 2012

Greece risks running out of cash by June

ATHENS (AFP) - Former Greek prime minister Lucas Papademos warned Greece may run out of money by the end of June if international bailout funds are cut off following next month's election, a newspaper reported on Sunday.

'From late June onwards, the ability of the government to fund its obligations fully depends on the approval of the subsequent installments of loans from the EFSF and the IMF,' To Vima newspaper quoted Mr Papademos as saying in a leaked memo.
'The available funds in the Greek government will be reduced gradually from about 3.8 billion euros on May 11 to about 700 million euros (S$1.1 billion) on June 18 and from June 20 will enter negative territory at the level of around one billion euros.'
Centre-left To Vima said Mr Papademos made the warning in a memo to President Carolos Papoulias dated May 11 that was then circulated to party leaders as they tried to form a coalition after an inconclusive May 6 vote.


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