Very hard lesson: Greece running out of cash

THE claim by Greece that the country will run out of money by the end of next week unless more credit is advanced must be a chilling prospect for the millions of Greeks dependent on their government for the very basics of life.

They are in a difficult and unenviable position.

An appeal by Athens to eurozone deputy finance ministers was rejected because reforms on which new funding hinges have yet to be agreed, much less implemented.

Nikos Voutsis, the Greek interior minister, said on Wednesday that the country would have to choose whether to repay €450m to the IMF next Thursday or pay salaries and pensions, claiming that it would choose the latter option.

As our economy recovers — yesterday’s exchequer returns showed payments in the first three months of the year came in 5.55% ahead of target as the State collected €545m more than anticipated — it is easy to forget that many strident voices urged a similar course of action to that of Greece for this country.

It is a pity that it takes the Greeks’ awful dilemma to show us what a lucky escape we had.

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