GREECE TO RETURN 1.4 bln EUROS TO PENSIONERS HIT DURING DEBT CRISIS

in-cyprus 30 July 2020 - by Annie Charalambous

Greece 

Prime Minister Kyriakos Mitsotakis’ conservative government made Wednesday’s decision following a top court ruling which said that some pension cuts imposed in 2015-2016 were illegal.

Mitsotakis said the one-off payment applies only to main pensions – not supplementary pensions or benefits. The money will be distributed to about 2 million private and public sector pensioners, a government official said.

The decision is expected to burden this year’s budget.

“This particular cost touches the limits of the country’s fiscal potential,” Mitsotakis told lawmakers. “There is no room for further provisions.”

Under the terms of three international bailouts in 2010-2015,

The country still has the highest debt-to-GDP ratio in the eurozone and the health pandemic dashed its hopes for strong growth this year.

Its finances are being closely monitored by the country’s international lenders, the European Union and the IMF.

(Reuters)