Talks on hospital debt repayments dead end

Discussions between officials from the health ministry and suppliers of state hospitals over payment of debts totaling 300 million euros reached a dead-end on Tuesday, with the disagreement is expected to be resolved in the courts.

Suppliers rejected a proposal by Health Minister Andreas Loverdos to accept a 20-pct discount on the debt for 2010. The ministry will repay its debt totaling 1.150 billion euros to suppliers by mid-January, but the two sides failed to reach agreement over the remaining 300 million euros of debt.

Speaking to reporters after the meeting, Health Minister Andreas Loverdos said if the government managed to save 250 million euros from a spending cuts programme and a timely payment of new supplies, it might not need to change the supply system, stressing that “unless a discount is made we cannot pay our debts”.

Loverdos said the government has agreed that payment to hospital suppliers would be made in real time, within 45 days from delivery.