Greece Taps Into Public Funds

Greece issued a legislative act on Monday requiring public sector entities to transfer idle cash reserves to the country’s central bank, as part of efforts to deal with a cash squeeze.

Greece has been tapping into the cash reserves of pension funds and public sector entities through repo transactions as it scrambles to cover its funding needs.

Monday’s act excludes pension funds and some state-owned firms. Cash reserves that are needed by these bodies for their immediate payment needs are also excluded from the regulation.