As the sixth tranche is belated - should have been collected in September - the State creates problems for individuals, putting obstacles or stopping almost all payments for 3 months. These debts have accumulated under the carpet and now reach 6 billion euros (plus 500 million for the Public Investment Program), although there is a term in the memorandum expressly forbidding delays in the State payments to the people.
To cover the debts the government must:
- receive the 6th tranche even by mid December
- implement the PSI with a haircut at 50% to save 3.5 to 4 billion annually, which otherwise would have gone
to interest. The implementation will come partially (300-500 million per month) but it will actually start in February
- make sure everything goes well after the agreement of October 26, to receive an additional 30 billion euros
First in line to be “settled” are suppliers of hospitals, ministries and insurance funds. The winners in the case will be pharmacists, pharmaceutical companies, fuel companies and hourly paid employees in the public sector. In the event that all three conditions are met the government may eventually allow the offsetting of tax debts, with its debts to taxpayers and businesses (eg from refunds of taxes and subsidies).