Struggling Greece Orders State Funds to Be Put in Central Bank

Officials said Monday as bond market traders fretted over the risk of default that Greece's cash-strapped government has ordered reserves from state agencies to be placed in a basket account to help the country meet obligations.
Following an emergency decree, which has been sent to parliament for ratification, the funds from anything from hospitals to local government will be moved to an account at the Bank of Greece to be made available for short-term loans to the state.
The move is the latest sign that Athens' coffers are running dry in the wake of the new left-wing government's dispute with creditors over an economic reform program deemed necessary to get remaining bailout funds paid.
The dispute has held up the payment of 7.7 billion dollars from Greece's international bailout, money it will most likely need to pay loans due over the coming few weeks.



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