Greece gives low pensions 100-million-euro boost

(ATHENS) - The Greek government said on Friday it would provide 100 million euros (139 million dollars) to retirees whose pensions are under 10,500 euros (14,700 dollars) a year.

The announcement came three weeks ahead of regional elections expected to be first real electoral test of the Socialist government, which came to power in October and has drafted harsh austerity measures to attack a huge public debt and deficit.

The measures, which have sparked vigorous public protest, aim to save 30 billion euros over three years and to reduce a public deficit that came to 14 percent of output last year, more than four times the prescribed eurozone limit.

The 100 million euros set aside for pensioners is the limit available to the government to help segments of the population affected by the austerity measures, which were adopted in exchange for a bailout by the European Union and the International Monetary Funds, according to a statement from the finance and employment ministries.

The assistance, to be provided once a year in December, will amount to 300 euros for retirees whose pensions are less than 7,000 euros and 100 euros for those with pensions up to 10,500 a year.

Greek pensions have been reduced by an average 10 percent this year under the austerity programme.

But when the country was on the verge of insolvency earlier this year, the government warned that if it could not borrow funds, parts of the pension system would have been unfunded from May.