Greece said it could run out of cash within weeks, taking a shot at European creditors that the newly elected government has challenged in an effort to leave the euro.
Greek Economy Minister George Stathakis said the country needs an infusion of between €4 and €5 billion ($4.5 to $5.7 billion) to make it through June. That’s because Greek citizens have stopped paying certain taxes, causing tax revenues to decline 7 percent, accounting for about €1.5 billion.
“We will have liquidity problems in March if taxes don’t improve,” Stathakis told the Wall Street Journal. “Then we’ll see how harsh Europe is.”
The new leftist government has said repaying its creditors would be difficult — Germany is its largest — and many Greeks support defaulting on the nation’s debt to wrest more sovereignty over its financial and monetary policies by leaving the Eurozone. But with €240 billion poured into the Greek economy over the years to keep it afloat, default would send ripples throughout the Eurozone.
Eurozone officials have given Greece a Wednesday deadline for devising a financing proposal to keep the heavily indebted nation above water. Stathakis said the country is facing bankruptcy without another round of cash.
