Greek local authorities outraged by decree ordering state enterprise funds in loan basket

Authorities from municipalities across Greece will hold an emergency meeting Tuesday after the government ordered reserves from state enterprises to be placed in a common account to help the country meet its financial obligations and avoid default.

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Following an emergency decree, funds from anything from hospitals to local government will be made available for short-term loans to the state.

Athens Mayor Giorgos Kaminis said his municipality would argue the decree was unconstitutional, while other mayors have told local media they are considering appealing the order in court. Opposition parties have expressed outrage.

The move is the latest sign that Greece is running perilously short of cash amid a dispute with its international creditors.

The Athens Stock Exchange general index tumbled 3.1 percent in afternoon trading.