State is running short of cash
The lockdown extension will require almost the entire financial arsenal of the government, which in the first quarter of 2021 will supply some 6.5 billion euros in liquidity of out of a budgeted total of €7.5 billion for the entire year.
Finance Ministry agencies are working on the support measures to apply up until the end of March so as to keep businesses alive. However, this is a very difficult task as the funds are limited and some government officials are already recommending the containment of support measures in the January-March period, fearing the pandemic could continue to pose a serious risk until end-June.
The government is utilizing Greece's cash buffer (of over €30 billion) for the payment of salaries and pensions, as state revenues have declined considerably, and there are no more sources for the state to draw liquidity from to support businesses and...