News World Greece to return 1.4 bln euros to pensioners hit during debt crisis

Greece to return 1.4 bln euros to pensioners hit during debt crisis

Greece will this year return 1.4 billion euros to pensioners whose income was slashed during the financial crisis of the past decade, the country’s prime minister has said.

Prime Minister Kyriakos Mitsotakis’ conservative government made Wednesday’s decision following a top court ruling which said that some pension cuts imposed in 2015-2016 were illegal.

Mitsotakis said the one-off payment applies only to main pensions – not supplementary pensions or benefits. The money will be distributed to about 2 million private and public sector pensioners, a government official said.

The decision is expected to burden this year’s budget. Greece‘s economy is seen shrinking by up to 10 percent this year due a nationwide lockdown the government imposed to contain the spread of the coronavirus.

“This particular cost touches the limits of the country’s fiscal potential,” Mitsotakis told lawmakers. “There is no room for further provisions.”

Under the terms of three international bailouts in 2010-2015, Greece cut state pensions several times to reduce spending and make the system viable.

The country still has the highest debt-to-GDP ratio in the eurozone and the health pandemic dashed its hopes for strong growth this year.

Its finances are being closely monitored by the country’s international lenders, the European Union and the IMF.

(Reuters)

Top Stories

Fourteen new corona virus cases detected out of 3,539 tests

According to the Epidemiological Surveillance Unit of the Ministry of Health 14 new cases of the SARS-CoV-II virus were detected out of a total...

Cyprus will stand by Lebanon, FM wrote in Book of Condolence

Cyprus will stand by Lebanon during these challenging times and will provide all possible aid and support in an effort to alleviate the immense...

Cyprus stands ready to offer any help that Lebanon requests, Justice Minister says

Cyprus Justice and Public Order Minister Emily Yiolitis has said that Cyprus is ready to offer any help that Lebanon requests. Yiolitis visited on Friday...

Four-member team of ‘Volunteer Doctors Cyprus’ travels to Beirut Sunday

A four-member team of "Volunteer Doctors Cyprus" departs on Sunday for Beirut to offer assistance at local hospitals. The team will provide help for the...

Cyprus’ Agriculture Minister expects joint meeting with EU Commissioners to discuss halloumi registration

Cyprus’ Minister of Agriculture Costas Kadis said on Friday that he expects a joint meeting to be arranged with competent European Commissioners, in order...

Taste

Octopus ‘Kathisto’ (or Octopus braised in Wine)

Ingredients: 1/2 cup Greek extra virgin olive oil 2 medium onions, chopped fine 1 large octopus, about 2kg (cleaned and kept whole) 3/4 cup dry red wine 1/3 cup...

Homemade lemonade

Ingredients: 1 cup lemon juice 1 cup sugar Method: Thoroughly wash the lemons with soap and warm water. Roll each lemon with the palm of your hand, pressing...

‘Striftaria’ mini cheese pies

Ingredients 1 ½ cup milk 2 tbsps. flour 4 tsps. of butter 3 eggs, slightly beaten + 1 extra with 1 tbs. of milk for spreading 1 pack of...

Mini potato canapes baked on salt

Ingredients Serves: 12 1kg small Cypriot potatoes rock salt, as needed 250g salted butter 300ml full fat cremé frâiche 1 pot cod or salmon roe Method Prep:20min › Cook:35min › Ready in:55min Take...