Debt collection

The average amount of debts that households cannot service is about BGN 2200, announced one of the large debt collection companies in Bulgaria. The biggest debts are piled up in major cities and in the northwestern Bulgaria.

The second lockdown, imposed in the country just a month ago resulted in a new decrease in debt payments to banks, telecommunications companies and fast loans.

The Development Ministry is planning to crack down on debt collection companies that instead of simply informing clients of their arrears use harassment tactics against debtors but also against their relatives, often even for sums as small as 20 euros.

Expectations for a new debt arrangement scheme, the exhaustion of the Greeks' taxpaying capacity and unpaid fines have sent taxpayers' overdue debts to 2.9 billion euros in the first four months of the year, with 2.73 billion of that being unpaid taxes.

The office of a debt collection company in southern Athens was targeted Monday afternoon by members of the Rouvikonas anti-establishment group.
According to reports, some 30 individuals entered the agency's office on the first floor of a building on Vouliagmeni Avenue in Aghios Dimitrios, and scattered fliers.

The Labor Ministry is expected to issue a decision next month to write off disputed debts toward the Single Social Security Entity (EFKA) and the Unified Supplementary Insurance and One-Off Benefits Fund (ETEAP).

The move is aimed at shortening the list of such debts by weeding out those that have been unfairly imposed.

Thousands of farmers and businessman in the Greek countryside and islands who have debts to Public Power Corporation (PPC) in excess of 1,000 euros will be receiving out-of-court settlement notices within the next few days.

The Social Security Debt Collection Center (KEAO) will publish the names of 18,146 debtors with dues that exceed 15,000 euros each to the Single Social Security Entity (EFKA) this winter unless they pay up or make arrangements to settle their debts by November 30.

The collection of expired dues resulting from unpaid Public Power Corporation (PPC) electricity bills according a specific timetable will constitute a government commitment to its creditors, to be included in the bailout review deal. The same goes for the effort to contain the phenomenon of power theft.

Collection agencies in Greece will be allowed to telephone debtors no more than once a week, instead of twice, as has been the case to date, according to new rules laid out by the Finance Ministry.

The new rule will also apply to lawyers acting on behalf of creditors.

The decision came as complaints about calls by debt collectors have proliferated.

The government is putting forward a plan that would allow small enterprises and self-employed professionals to settle debts to social security funds of up to 20,000-30,000 euros.