Greek government launches support of households with heavy debts on World Consumer Day

ATHENS, March 15 (Xinhua) -- "The indebtedness of Greek households undermines the foundations of economic and social life, " said Economy, Competitiveness and Shipping Minister Louka Katseli here on Monday, as he unveils new initiatives to solve the problem.

Six out of ten households in Greece have heavy debts to banks and two out of ten already cannot meet their obligations, according to a survey presented on Monday during an event organized by the Ministry of Economy, Competitiveness and Shipping on the occasion of the World Consumer Day.

Greek households today owe at least 120 billion euros (164.46 billion U.S. dollars) to banks, while six years ago the amount stood at 52.5 billion euros, according to data presented by the non governmental organization "Union of Consumers- Quality of Life. "

The Greek government intends to promote soon a new bill on the indebtedness of Greek households and transparency in bank transactions and to create a nationwide net for the free of charge education of consumers on better management of debts.

"This year's World Consumer Day in Greece found Greeks with low incomes desperate due to the new hikes in VAT rates which were enforced today," the Greek Center of Consumers said, commenting on the second package of austerity measures announced by the Greek government recently.

Greek citizens fear that the further increase in VAT rates from 19 percent to 21 percent on goods and services will reduce dramatically their purchasing power.

Greek Labor Minister Andreas Loverdos and the National Confederation of Greek Commerce head Vasilis Korkidis announced on Monday that in a sign of solidarity to the people most affected by the crisis, unemployed will get a discount of 20 percent to various stores.

Greek government announced earlier this month a package of austerity measures in an effort to reduce the high fiscal deficit from 12.7 percent to 8.7 percent by this year.