Greece is giving $1.6 billion to its bankrupt citizens
Bankrupt Greeks are getting an early Christmas present.
Greece will distribute over €1 billion ($1.2 billion) in surplus
government funds to families and pensioners that have been hit by
austerity, according to Prime Minister Alexis Tsipras. Another €360
million ($422 million) will go to the Public Power Corporation to help
ensure that energy prices don't go up in 2018.
The "social dividend" payments,
which will be made in December, are possible thanks to the country's
bigger than expected budget savings.
Tsipras was first elected on the promise of ending years of tough austerity prescribed by the European Union and the International Monetary Fund. The two groups have lent Greece over €300 billion ($350 billion) to prevent it from defaulting on its debts and dropping out of the euro. In return, they asked for deep spending cuts and tax rises.
Tsipras was forced to agree to even more drastic measures in order to secure a third bailout in 2015.
Greece appears to be sticking to the plan, and the economy is growing again after years of recession. The European Commission expects the Greek economy to expand by 1.6% this year and by 2.5% in both 2018 and 2019.
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