Tranche

The Finance Ministry is considering a measure allowing taxpayers who suffered losses as a result of the coronavirus lockdown and had their tax obligations suspended to pay their taxes this fall in 12 installments, with little or no interest.

The Finance Ministry is considering a new extraordinary measure for the payment of taxes this year, in more installments than normal, after a better-than-expected performance of public revenues in March.

After the strategic defaulters have been exposed, according to government planning, and the existing framework for the protection of borrowers' main residence has expired on April 30, truly vulnerable households will get a safety net if they cannot service their dues, so that they are not left on the street.

Last year's scheme by which debtors can settle their dues to the state in up to 120 tranches has brought many taxpayers to tax offices and additional takings into state coffers, reducing the stock of overdue arrears to the state.

The new online platform for state debtors to have their dues arranged for settlement in 24 to 48 monthly installments will open on February 26.

As of that date, taxpayers who meet the requirements can join the new arrangement program that provides for twice as many tranches as the previous one, known as the standard settlement.

The measure of the progressively protected bank account for each individual or corporation with tax overdue arrears under arrangement will become active as of January 2020. This concerns debtors who have entered any payment plan and have been consistent in meeting their obligations to it.

Any taxpayers unable to meet their obligations to the state in 2020 will be able to settle their debts in 24 installments without any income criteria, but at a higher rate of interest, according to a new Finance Ministry plan.

The European Commission on Thursday approved the Greek state's "Hercules" plan to reduce local banks' bad loans by up to 30 billion euros, and Deputy Finance Minister Giorgos Zavvos called on the country's lenders to utilize the project, making the most of the favorable market climate that cuts the cost of state collateral.

According to the tax bill submitted to Parliament by the Finance Ministry on Friday, the government is introducing incentives for enterprises with debts to the state to pay up in fewer tranches having entered the scheme where payments can be made in up to 120 installments. The vote is to be held on Thursday following a decision to shorten the debate process.

The program for settling tax debts in up to 120 tranches was on Thursday expanded to companies with gross revenues of up to 2 million euros per year, to the detriment of the out-of-court settlement mechanism.