Greece’s public sector overdue payments to private creditors surged in the first three months of 2026, rising by €526 million compared to December 2025 to reach €3.1 billion, despite Finance Ministry directives urging general government entities to accelerate settlement of outstanding obligations.

When pending tax refunds are factored in, the total liability owed by the state to suppliers, taxpayers, and pensioners reached €3.869 billion by March, up from €3.299 billion at the end of 2025, an increase of €570 million in three months.

Public hospitals remain the single largest debtor in the general government. Their overdue payments to suppliers climbed to €1.59 billion in March, up €193 million from €1.397 billion at the end of 2025.

Social security funds owed €668 million in March, up from €606 million in February, though broadly flat compared to the €666 million recorded at end-2025. Included in that figure is €199 million owed by EOPYY, the National Organization for Healthcare Services Provision, which remains unresolved.

Local government debts, covering municipalities and regional authorities, stood at €412 million in March, down €34 million from February. The figure nonetheless represents a dramatic deterioration from the €180 million recorded at end-2025, when year-end budget disbursements had temporarily reduced the backlog.

Other public legal entities saw their overdue debts jump from €165 million in February to €200 million in March. Ministries collectively owe €199 million, with the Migration and Asylum Ministry accounting for €70 million and the Ministry of Shipping and Island Policy for €64 million.

Pending tax refunds also increased over the period, reaching €766 million in March from €722 million at end-2025. Of that total, €329 million relates to refunds delayed by more than 90 days. Roughly half of those cases involve missing documentation or non-response from eligible recipients.

Source: ot.gr