Debt settlement

The 120-installment payment plan for self-employed professionals and businesses with debts to the state and social security funds has been extended from arrears of up to 50,000 euros to 125,000 euros.

The measure is also extended to include debts created in 2017.

The Economy Ministry appears to have agreed with the country's creditors on the inclusion in the extrajudicial debt settlement mechanism of individuals who are partners of enterprises in trouble.

The Economy Ministry and the country's creditors have agreed on the full lifting of bank confidentiality concerning debtors benefiting from the law protecting borrowers, known as the Katseli Law after the minister who introduced it earlier this decade.

Banks are about to issue a call to some 1,000 businesses with nonperforming loans from two or more credit institutions to enter the out-of-court debt settlement mechanism. The requests are expected to be made gradually over the course of May to entrepreneurs selected by Greece's four systemic banks with debts ranging between 50,000 and 2 million euros.

The online platform for the extrajudicial debt settlement mechanism opened on Monday for self-employed professionals too, provided they have debts to the tax authorities or social security funds of between 20,000 and 50,000 euros.

Borrowers should have the first option to buy back their loan at the same price as that for which their creditor would sell it to a fund, according to a joint proposal tabled yesterday by the plenary of Greek bar association presidents, the Economic Chamber of Greece (OEE) and the Technical Chamber of Greece (TEE).

Borrowers should have the first option to buy back their loan at the same price as that for which their creditor would sell it to a fund, according to a joint proposal tabled yesterday by the plenary of Greek bar association presidents, the Economic Chamber of Greece (OEE) and the Technical Chamber of Greece (TEE).

A circular issued on Tuesday by the Independent Authority for Public Revenue offers taxpayers the chance to settle their dues to the tax authorities in up to 12 installments, be it for one non-expired income tax installment or their entire annual dues that would normally be paid in three tranches every two months.

Banks are placing emphasis on long-term debt settlements, particularly for mortgage loans, which under certain conditions would include forgiving part of the original amount owed.

Businesses with debts of between 20,000 and 50,000 euros will need to neet all three criteria set for their inclusion in the automatic extrajudicial debt settlement mechanism, according to a joint decision issued by the ministers of finance and labor, which has been sent to the country's creditors for approval.