New debt repayment plan in 120 tranches considered

The Finance Ministry is planning a new scheme for the settlement of outstanding debts to the state in 100 or 120 installments, fearing the accumulation of a new generation of arrears due to the health crisis.

Payments are due to restart as of May 2021 and the government is concerned as it appears impossible for the entire volume of the new arrears to be serviced in 12 or even 24 monthly tranches, as is the case with the special arrangement introduced for the debts run up during the pandemic.

The market is putting pressure on the government for new debt repayment plans or even write-offs, and it appears the ministry is preparing a new settlement plan that see debts being paid off in 100-120 tranches - which could even include debts created before the pandemic hit. The government's final decisions are not expected before next year.

In any case, before any...