Greek Hospitals' Pharma Debt Settlement Underway

In Greece, the process for settling hospital debts to suppliers ofpharmaceuticals and other products has now begun (Marketletter February 3). The debt to the manufacturers now totals 197 billion drachmas ($722.3 million), to be repaid by government bonds of two, three and four-year duration.

At a meeting last week with officials of the Ministry of Health and the National Bank, Paul Giannacopoulos, president of the Association of Representative of Pharmaceutical Products and Specialties, was assured that the issuing of government bonds for payment of the debts would begin within three weeks at the latest. The National Bank was selected for the debt settlement by bonds. 5% of the the total will also be paid in cash, as quickly as possible, by the hospitals.

Mr Giannacopoulos notes that the huge public debts to the drug and medical products suppliers has caused serious problems not only to the industry but also to the hospitals. A recent tender by the Ministry of Development for the supply of pacemakers for 18 hospitals, worth around 3.5 billion drachmas ($12.8 million), will have to be repeated, as not a single application was received from any of the 20 suppliers of these products to the Greek market.