Gov’t plan to set­tle smaller cor­po­rate debt

Kathimerini English - - Focus - ROULA SALOUROU

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.

Ac­cord­ing to the scheme, debtors will be eval­u­ated on the ba­sis of spe­cific ob­jec­tive cri­te­ria such as the size of their debt, the pe­riod of time over which the debt was cre­ated and the prospects of re­pay­ment.

Once a set­tle­ment is agreed, debtors will be mon­i­tored to de­ter­mine whether they are meet­ing their pay­ments, while the agree­ments will be re­assessed on a reg­u­lar ba­sis to es­tab­lish whether the orig­i­nal con­di­tions still ex­ist. Au­thor­i­ties will also in­spect whether a part of the debt was ac­crued as a re­sult of penal­ties im­posed with­out the proper pro­ce­dures be­ing fol­lowed.

The scheme will be im­ple­mented by the up­graded So­cial Se­cu­rity Debt Col­lec­tion Cen­ter, which af­ter the merger of all so­cial se­cu­rity en­ti­ties will evolve into the cen­tral mech­a­nism for the col­lec­tion of ex­pired debts, even those be­low 5,000 eu­ros.

See­ing the sum of debts come close to 30 bil­lion eu­ros, the La­bor Min­istry has con­cluded that along­side chas­ing so-called strate­gic de­fault­ers, a cen­tral tar­get should be in­creas­ing the col­lec­tion ca­pac­ity of the so­cial se­cu­rity sys­tem.

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