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Unpaid by State, Greece’s Post Office Faces Going Broke

Ευρωκίνηση

Photo: Eurokinissi/Giorgos Kontarinis.

ATHENS – Owed 200 million euros ($211.23 million) by the government, Greece’s state-owned Hellenic Post (ELTA) is on the verge of going under unless the problem is resolved, media reports said.

Officials have reportedly said ELTA is having trouble serving its public and private clients with the state debt having come from the post office bringing mail and deliveries to the most remote parts of the country, Kathimerini said.

Post office authorities said the unpaid revenues are strangling its operation and bringing it into serious financial difficulty threatening its ability to continue.

To meet its cash requirements, ELTA has also been forced to withhold 13 million euros due to Eurobank that ELTA had collected in the bank’s account based on the two sides’ agreement concerning Eurobank-owned Hellenic Postbank.

Sources told the paper that the company’s management claim the problem with the pending state payment will probably be resolved soon, as well as with Eurobank. The bank has proposed the solution of the problem through the signing of a new contract, with fresh collateral.