Greek state arrears to private sector jump to 3.82 billion euros in August

Surge in public sector liabilities

Total overdue liabilities of the Greek state to the private sector climbed to 3.823 billion euros at the end of August 2026, according to official data from the General Accounting Office and the Ministry of National Economy and Finance. The total reflects an increase of 552 million euros over a single month, rising from 3.27 billion euros recorded in July. General government arrears alone reached 2.8 billion euros, compared with 2.646 billion euros in July and 2.57 billion euros at the close of 2025. Two months earlier, business associations raised the accumulation of state debts during meetings before the Thessaloniki International Fair, when liabilities stood at 3.55 billion euros. The expansion adds almost half a billion euros to the obligations recorded at the end of 2025, when combined debts totaled 3.3 billion euros.

Healthcare sector leads overdue debt

Public hospitals account for the single largest category of state payment delays, accumulating 1.331 billion euros in debt to private suppliers by August. That figure rose by 93 million euros from 1.238 billion euros in July, after having stood at 1.307 billion euros in June. In July, hospital liabilities represented nearly 47% of all overdue obligations across the general government, despite an earlier drop from the 1.605 billion euros recorded in January 2026. Official accounting guidelines state that these hospital obligations reflect unadjusted totals.

Overdue liabilities of EOPYY and hospitals show gross amounts, and an obligation remains from suppliers for rebate and clawback that has not yet been offset.

Suppliers delivering medicines, consumables, and medical equipment operate under constrained bargaining leverage, leaving private vendors to carry working-capital shortfalls without severing supply agreements.

Breakdown across state agencies

Social security organizations registered 733 million euros in arrears at the end of August, rising 52 million euros from 681 million euros in July. This category includes 280 million euros in pending liabilities from the National Organization for Healthcare Services Provision (EOPYY), alongside unpaid pension allocations. Local government authorities, encompassing municipalities and regional administrations, accumulated 329 million euros in arrears, expanding from 314 million euros in July and 180 million euros at the end of 2025. Other public-law legal entities owed 250 million euros, up from 241 million euros in the prior month. Central ministries accounted for 150 million euros in obligations, with the Ministry of Migration and Asylum responsible for 61 million euros and the Ministry of Shipping and Island Policy for 36 million euros. Within the state budget, the Public Investment Programme accumulated 125 million euros in arrears, of which those two ministries represent 78%.

Backlog in tax refunds

Pending tax refunds administered by the Independent Authority for Public Revenue rose 62% in August, climbing from 629 million euros in July to 1.023 billion euros. Within that balance, direct tax refunds accounted for 493 million euros, while indirect tax refunds totaled 421 million euros. Claims delayed by fewer than 90 days reached 775 million euros, whereas refunds delayed for more than 90 days totaled 248 million euros. Out of the long-term overdue tax repayments, 158 million euros could not be settled immediately because of procedural impediments. The accumulation leaves thousands of individual taxpayers and corporate vendors awaiting funds, compelling affected businesses to rely on commercial bank borrowing to cover value-added tax payments and payroll obligations.