Greek parliament approves law forcing local governments to lend to state

[WorldNews]

By Renee Maltezou ATHENS (Reuters) - Greece's parliament on Friday approved a decree forcing state entities to lend cash to the near-bankrupt state, defying protests by municipalities and labor unions. Just weeks away from running out of cash, Athens has been tapping into the cash reserves of public sector entities through so-called repo transactions to cover its needs. On Monday it ordered entities, including local governments, to lend spare cash to the state while it tries to reach a deal with skeptical foreign creditors on new financial aid. Some local government officials have threatened to defy the orders, while others said they needed explanations before contributing to the state's coffers.

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