Greek government owes some €5.6 billion to international pharmaceutical companies, known as Big Pharma, related to purchases by state hospitals.
According to a press release recently landed in my inbox, the ministry proposes to deal with this with a €230 million cash settlement for debt accumulated in 2005-2006. For debt incurred later, it will issue interest-free securities. For debts accumulated in 2007, those securities will mature in two years, three years for those accumulated in 2008, and four years for those incurred in 2009.
It promises “an open competitive bidding mechanism for the procurement of healthcare supplies from international pharmaceutical companies” and a new framework-–to be announced in coming days–to address “the legality issues surrounding certain healthcare expenditures in 2007-2009.”
Source: Real Time Brussels (WSJ)