Debtor

Starting in September, the Independent Authority for Public Revenue (AADE) will be able to monitor debtors' repayment schedules in real time and message them immediately if they skip a payment.

The names of individuals and companies that have outstanding debts over 150,000 euros to the state and/or the social insurance fund (e-EFKA) were posted by the Greek Independent Authority for Public Revenue (AADE) on Friday.

With the July 31 deadline to agree on a repayment schedule for their debts to the state having come and gone, and with very few takers, authorities are taking the next steps: shaming and, hopefully, collecting, although the latter part will be far from easy, officials admit.

The way for the retirement of more than 150,000 EFKA debtors is opened by a draft law of the Ministry of Labor, increasing the debt limit to 30,000 euros.

At the same time, it foresees the abolition of the 30% "penalty" in the pensions of those who work and its replacement with a special contribution, for incomes over €5,000.

One in every three debtors who apply for out-of-court debt settlement reject the terms they are offered resulting from the platform's algorithm. Most of them claim that the terms are too harsh, while a significant number estimate that it is not in their interest, so the government is understood to be considering new interventions.

The competent services of the Single Social Security Entity (EFKA) are asked to cross-check the debts of individuals and businesses that exceed 150,000 euros, in order to update the data by August 4 so that they can be made public without errors.

The new leadership of the Economy and Finance Ministry, as well as the tax administration, are particularly concerned about insufficient interest debtors show in rejoining the old arrangements of 72 and 120 installments for dues to the state.

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.

The participation of tax and social security debtors in the 72- or 120-installment arrangements is increasing gradually, but without recording any significant performance. Applications are still low, but lately there seems to be a bit more interest.

Some 200,000 businesses and individuals with debts to the state have been given two options: Either rejoin the 72- or 120-installment arrangements, or face confiscations.