Bankruptcy

Sri Lankan authorities have declared a five-day closure of financial markets from June 29 ahead of a controversial move to restructure the government's domestic debt amounting to more than $51 billion.

The restructuring affects government bonds in line with an IMF bailout agreed in March, after Sri Lanka defaulted on its foreign debt in April last year and declared bankruptcy.

The US Congress has approved financing through borrowing for ONEX Shipyards to carry out the consolidation plan for Elefsis Shipyards.

The US International Development Finance Corporation (DFC), America's development bank, will provide the amount of $125 million.

This financing will be the first so far from DFC for Greece.

Eight out of 10 applications submitted under the new 36- to 72-installment arrangement are rejected by the electronic system of the tax administration, as those interested in joining it usually do not meet the terms and conditions. The biggest problem they face concerns the condition of not having any unregulated debts before November 2021.

The Ministry of Finance, banks and funds are discussing changes to the basic terms of the out-of-court settlement, which will lead to the cancellation of debts for more debtors.

There are so many absurdities in Greece, and we have put up with them for so long that we think they are normal. When we see the world through a distorting lens, it is natural that we cannot identify the problem, nor solve it. On the contrary, we use our delusions to judge each other. Every election campaign highlights this weakness in all its miserable glory.

"There is no risk of bankruptcy of the state, nor of the intervention of the International Monetary Fund and the need to take out new debt." This was stated on the National Television by the Acting Minister of Finance Rositsa Velkova. Her comment was on the occasion of the two scenarios of the long-term budget forecast leaked to the media yesterday.

"The latest data on the course of the Extrajudicial Debt Settlement Mechanism prove that it is now functioning satisfactorily," Finance Μinister Christos Staikouras said on the occasion of the publication of the progress report of the out-of-court settlement mechanism. 

The ability of a citizen to leave behind his debts by going bankrupt can work beneficially, which is proven by the impact that the relevant, recent law has had.

Bankruptcy, when it results from true inability to pay, can also be a second chance at a fresh start and should not be stigmatized.

Bankruptcy applications, based on Law 4818/2021, are coming thick and fast from individuals with or without commercial activity, as they are unable to repay their debts to banks and insurance funds.

The Finance Ministry anticipates fresh debt settlements from banks and management organizations over the next five months, ranging from 1.5 to 1.8 billion euros through the out-of-court settlement mechanism.