The Greek public sector’s overdue debts to private entities saw a staggering increase of 395 million euros in just one month, pushing the total debt to 2.925 billion euros in March, up from 2.53 billion euros in February. Including pending tax refunds amounting to 723 million euros, the public sector’s overall debt now reaches 3.648 billion euros.
Meanwhile, the Independent Authority for Public Revenue (AADE) is actively seeking thousands of taxpayers to return 234 million euros they are entitled to. The delay stems from missing documentation or the absence of a registered IBAN in the tax system.
Hospitals Lead in Debt Accumulation
Public hospitals remain the primary contributors to the mounting public sector debt, with their outstanding payments to suppliers climbing to 1.489 billion euros in March, up from 1.164 billion euros in December. This ongoing increase is causing significant liquidity challenges in the market.
The European Commission has warned that delayed payments from public hospitals particularly hinder the competitiveness and resilience of small and medium-sized enterprises (SMEs) in the healthcare sector.
Other Sectors Affected
In addition to hospitals, social security organizations reported overdue debts amounting to 582 million euros in March, mainly due to delays in supplementary pension payments.
Local government entities also saw their debts rise by 93 million euros, reaching 373 million euros in March, compared to 280 million euros in February.
Additionally, other legal entities within the public sector reported increased overdue liabilities, reaching 227 million euros in March.
Tax Refund Delays Continue
Pending tax refunds also continue to accumulate, totaling 723 million euros in March. Of these, 316 million euros have been delayed for over 90 days, with 234 million euros of that amount held up due to external factors, such as lack of documentation or non-compliance by recipients.
