Greece to save funds on defense, healthcare and pensions

Greece has presented an additional plan to the European Commission, European Central Bank and IMF to save €325 million, RIA Novosti reports.

The Greek parliament passed a program for a budget economy in exchange for a €130 billion loan from the EU and IMF and a €100 billion program for writing off its sovereign debt. The plan reduces €3.5 billion of expenses in 2012, but it is being dragged out because it did not state a way to cut expenses by €300 million.

The Euro Group plans to approve the initiative on Thursday, until Athens determines additional sources for reduction.

About €100 million will be saved on healthcare and defense. €45 million will be saved from pension reductions, €20-30 million from pension insurances, €40 million from reduction of benefits for large families, about €90 million from reduction of wages for doctors and the military and about €20 million from cutting government expenses.

The bill on reduction of expenses will be introduced to the parliament on February 90. Meanwhile, Greece and the EU will be realizing the new credit deal and the PSI program for debt exchange.