EIB Completely Oblivious Re: The Greek Economy

There is an article in Euro2Day. It quotes the Vice president of The European Investment Bank.

EIB, (the European Investement Bank) is completely oblivious to the state of the Greek economy.

The Vice President Mr Molterer is quotes saying the following

” It sends the RES, Mr. Molterer notes that the EIB has good programs in Greece, having created together with the European Commission a Guarantee Fund of approximately 500 million for medium and small businesses as a pilot program for export activities.”

Maybe Mr Molterer is unaware of the the economic situation in Greece.

As things stand at the time of writing the Greek government is spending around 1 billion Euros a month more than it takes in in taxes.

And the latest “debt deal” involves the Greek government paying back 50 billion Euros over the next 7 years or 84 months. This works out at 595 million Euros a month.

The rate the Greek government is going through cash this 500 million Euros that Molterer refers to would last the government less than 2 weeks.

So in short when Mr Molterer says that 500 million Euros will have a major impact on the Greek economy the reality is that it is a drop in the water and is completely insignificant when you look at the bigger problems in the country.

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