Greece has an additional financial obligation: the government owes suppliers six billion euros. Actually, the situation has existed for some time, but it has only recently become critical. “The first step (in improving access to financing) is to pay the arrears that have accumulated,” EU representative, Horst Reichenbach told a conference in Athens, according to Reuters. The news service reported:
Greece’s sovereign debt crisis has created a virtual credit crunch for businesses, as banks cut off from wholesale funding markets struggle to lend while its near-bankrupt government holds off on long overdue payments to avoid running out of cash.
Douglas A. McIntyre