ML-Implode News - With Money Drying Up, Greece Is All but Bankrupt

Some 89 percent of Greece's â‚¬6.5 billion investment budget is majority financed by Europe, meaning the government is paid back shortly after each outlay. Through the worst days of austerity, Mr. Bakoyannis explains, these investments -- highways, bridges and ports, for example -- had continued, as the government always knew it would be paid back in weeks. Since April 30, he says, the liquidity crisis in Athens has forced the government to stop payment on these initiatives as well, the first time in his memory that that has happened.
"These projects are our lifeline," said Mr. Bakoyannis, who has seen his infrastructure budget cut to â‚¬12 million from â‚¬65 million in the past four years. "It's not about Keynesian politics anymore -- it's about finding enough money to repair a simple road."''

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With Money Drying Up, Greece Is All but Bankrupt