There are only three options remaining for the Syriza government.

by Stathis Kouvelakis

Events in Greece have taken a dramatic turn, and insolvency is at the gates. On April 20, the Greek government issued a decree forcing local authorities to place cash reserves at the Bank of Greece.

Two days later, Dimitris Mardas, the deputy minister of finance in charge of state revenue, declared that €400 million were missing to pay for pensions and salaries at the end of the month. A few hours later, he said the money was found and that he was now trying to constitute cash reserves. But according to sources, Mardas informed Syriza members of parliament at a meeting that same day that the state reserves wouldn’t be able to make all payments in May.

And that’s despite, in terms of debt payments, May being a relatively “easy” month, with only €750 million due to the International Monetary Fund (IMF), plus another 400 million in interest payments.

June will be more difficult, with €1.5 billion due to the IMF, €700 million to the European Institutions, and 500 million in interest payments. The burden is without a doubt untenable.