Plan for the settlement of bad loans gets more flexible

By Dimitra Manifava

The plan prepared by the Development Ministry for the extrajudicial settlement of bad corporate loans features more flexible criteria for businesses wishing to enter the process, in a bid to have as many debtors as possible pay at least a portion of their dues.

The latest plan raises the turnover ceiling of small and medium-sized enterprises qualifying for the plan to 2.5 million euros per year and waives the criterion of a turnover decline of at least 20 percent in the 2011-13 period and that regarding the number of employees, which the previous draft had provided for.

It also delivers an incentive to banks which are willing to write off a part of a corporate loan, as they will enjoy an exemption totaling the amount of the loan’s nominal value and the interest already imposed from the lender’s gross revenues for the next 10 years.