Greece received the first instalment of its 110 billion-euro rescue package today.
The 20 billion-euro cash injection, 14.5 billion of which has come from the European Union and the rest from the International Monetary fund, will act to stave off an immediate default as the first of Greece’s debts matures.
The package is designed to protect Greece from falling into greater economic problems as it implements a strict set of austerity measures.
Greek families stand to lose up to a third of their income as the country attempts to reduce its 300 billion euro debt and cut its 13.6% budget deficit, which is far in excess of the 3% ceiling put in place by the EU.
The bailout payment arrived as the government scrambled to deal with the embarrassing resignation of a government minister, as it was revealed her husband owed a 5 million-euro tax debt.
Deputy Minister of Culture and Tourism Angela Gerekou, stepped down after it was revealed her husband, pop singer Tolis Voskopoulos faced criminal prosecution over the debt.
Gerekou and Voskopoulos had filed joint tax returns for many years.
Several outlets reported that Voskopoulos’ large debt had been “well known to economy ministry officials” for months.
The Greek government accepted Gerekou’s resignation, saying in a statement: “Angela Gerekou has submitted her resignation for reasons of sensitivity and sensibility, so that there cannot be the slightest pretext to hurt the government.”
Her resignation came just days after the Greek government launched a high-profile campaign to name-and-shame tax evaders.
