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Payment of debts to the State in 120 installments

Following the recent legislation, it is now possible for persons who owed, at 31 December 2016, amounts up to EUR 50,000 to the State, to be included in the extrajudicial mechanism of a regulation of Law 4469/2017.

The recent circular POL 1055/2018 provides detailed instructions for joining the regulation, which allows the repayment of debts to tax authorities, insurance funds, etc., in up to 120 monthly installments.

It also allows for the reduction or cancellation of fines and interest, as well as the deletion of part of the principal debt by criteria such as the amount of debts, the income and the value of the debtor's property.

Who is subject to regulation

The arrangement concerns debtors who are legal or natural persons with a bankruptcy capacity, that is persons with a commercial capacity if:

  • All debts to all creditors up to 31/12/2016 do not exceed € 20,000, or
  • Their debts to the State exceed 85% of their total debts to all creditors by 31/12/2016, which do not exceed € 50,000.

It also includes natural persons without bankruptcy, since they have started business and earned income from business activity, such as freelancers, with established debts to the State until 31/12/2016 not exceeding € 50,000.

Requests for affiliation and related supporting documents are submitted by 31/12/2018 electronically through the website of the Special Secretariat for Private Debt Management.

Configure a setup proposal

For the submission of a proposal for settlement by the State, account shall be taken of the disposable income and value of the debtor's movable and immovable property and any co-debtors who lodge the application.

For calculating the final amount of the debt to be settled and the number of installments, the State proposes adjustments based on the amount of the principal debt to be settled, as follows:

a. For total certified basic debts up to € 3,000:

  1. Separate payment of the total amount of the debt, with no deduction.
  2. Minimum monthly installment of € 50.
  3. Maximum number of doses, 36.


b. For total established basic debts to be settled from € 3,000 to € 20,000:

  1. Remission of 85% of the debts from surcharges and late payment payments.
  2. Minimum monthly installment of € 50.
  3. Maximum number of doses, 120.

c. For total statutory debts to be settled in the State from € 20,000 to € 50,000: arrangements are only granted if the borrower meets the viability criterion. The State may propose arrangements even without the criterion of viability, if it has, in accordance with its internal procedures, its own viability study, under which the debtor's debt is considered viable.

Other benefits for the debtor

Affiliation and compliance with the arrangement has the following beneficial consequences:

  1. No further interest and surcharges are calculated.
  2. Evidence of the relevant debts is provided.
  3. Suspended / suspended any relevant criminal prosecution.
  4. It is conditional on the taking of compulsory measures and the continuation of the process of forced execution on movable and immovable property of the debtor.

Reasons for losing the setting

The settlement is lost in case of failure to pay installments, failure of the debtor to file income tax / VAT declarations, or to pay or regularize, within a specified period, his debts to the State, which were certified after 31/12/2016, etc.

In case of loss of settlement, the total outstanding debt becomes immediately due and payable, according to the information in the original certificate together with the relevant interest and surcharges.

G. Samothrakis, J. Panou
Posted on Sunday newspaper, "Kathimerini", on 01/04/2018

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