Public Sector Arrears Soar to €3.9 Billion – Hospitals and Tax Refunds Drive the Increase

Hospitals and Social Security Lead the Surge

The Greek government’s overdue debts to citizens and businesses jumped to €3.9 cardinal in August, highlighting a persistent structural contented successful nationalist fiscal management, contempt the authorities moving a fund surplus.

According to the latest figures from the Government Accounting Office, full authorities arrears to suppliers, hospitals, and taxpayers reached €3.882 cardinal successful August, up from €3.541 cardinal successful July – an summation of €341 cardinal successful conscionable 30 days. Public hospitals proceed to predominate the arrears list, with liabilities reaching €1.627 billion, up €129 cardinal from July, marking the highest levels since spring. The National Organization for Healthcare Provision (EOPYY) unsocial owes €305 million, portion societal information institutions collectively person arrears of €651 million.

Even with the cognition of the National Central Health Procurement Authority, repayment times for suppliers proceed to stretch, reflecting ongoing inefficiencies. Since 2019, infirmary debts person much than quadrupled – rising from €344 cardinal to €1.62 billion, demonstrating a systemic hold successful nationalist fiscal flows.

Pending Tax Refunds Add Pressure

Pending taxation refunds besides contributed importantly to the emergence successful arrears, expanding by €196 cardinal successful a azygous period to scope €928 million. Of this amount, €431 cardinal subordinate to nonstop taxes and €392 cardinal to indirect taxes, portion €288 cardinal are considered overdue for much than 90 days. These delayed payments impact some businesses and citizens, straining liquidity successful the backstage assemblage and limiting currency travel successful the wider economy.

Structural Management Issues Behind Rising Arrears

The authorities acknowledges that the persistent summation successful overdue debts is simply a “structural absorption problem,” arising from lengthy support procedures, bureaucratic delays, and currency retention strategies aimed astatine preserving fund reserves. Officials reason that a gradual simplification is expected by year-end, arsenic rebate and clawback mechanisms are completed and repayment processes are accelerated via the General Accounting Office.

Impact connected the Real Economy

The accumulation of arrears has tangible effects connected the Greek economy. Businesses providing goods and services to the authorities look liquidity constraints, healthcare providers transportation costs to patients, and consumers acquisition delays successful taxation refunds. Moreover, rising arrears endanger to undermine authorities efforts to comply with upcoming European fiscal surveillance rules from 2026.

Debt Growth Remains Steep

From December 2024 to August 2025, nationalist assemblage arrears roseate from €2.3 cardinal to €3.9 billion, an summation of 27.4% successful 8 months. Without contiguous enactment to amended currency travel absorption successful hospitals, societal information funds, and different nationalist entities, the authorities risks continuing to accumulate liabilities, intensifying fiscal unit connected an system already successful request of liquidity.

Breakdown of Public Arrears (August 2025)

• Hospitals: €1.627 cardinal (+€129 million)

• Social Security Institutions: €651 million

• Local Authorities: €251 million

• Other Legal Entities: €227 million

• State Budget Liabilities: €198 million

• Pending Tax Refunds: €928 million

This grounds emergence successful arrears highlights the captious request for structural betterment and stricter oversight of nationalist fiscal management, arsenic delays successful authorities payments proceed to ripple crossed the economy, affecting some businesses and citizens.

Source: pagenews.gr

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