Greece’s undeclared domestic default takes hold

04-May (BBC) — When will Greece run out of money? The question has been vexing European capitals and the markets for months, as the stand-off between the new government in Athens and its eurozone creditors remains unresolved.

So far, Greece has managed to both service its external debt and pay for wages and pensions.

But the worst kept secret in the country is that for thousands of people, businesses and institutions relying on government pay cheques, in every practical sense, Greece is already out of money.

Greece has not received any loans from the eurozone or the IMF since August 2014.

There is €7.2bn (£5.3bn;$8bn) left in the country’s bailout program, but creditors refuse to release the money before their demands for further reforms, spending cuts and tax increases are satisfied by Athens.

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