Ex­tra­ju­di­cial sys­tem to in­clude debts to state

Kathimerini English - - Focus - EVGENIA TZORTZI

Any en­ter­prises that had ex­pired debts to the banks or the state at the end of 2016 will be able to en­ter the gov­ern­ment’s ex­tra­ju­di­cial mech­a­nism for the set­tle­ment of ar­rears and get one last chance to stay in busi­ness.

Al­though sev­eral tech­ni­cal details re­main to be set­tled with the coun­try’s cred­i­tors, the main points have al­ready been agreed on, in­clud­ing the pro­vi­sion that the mech­a­nism will be able to ac­cept en­ter- prises (in­clud­ing per­sonal ven­tures) with to­tal debts of 20,000 eu­ros or more. These en­ter­prises will also be able to re­struc­ture any debts they run up in 2017 and 2018.

The gov­ern­ment and the cred­i­tors also deemed it nec­es­sary to dic­tate the elec­tronic clear­ing of ap­pli­ca­tions that con­cern debts be­tween 20,000 and 50,000 eu­ros: In or­der for the on­line sys­tem not to crash, there will be an au­to­matic elec­tronic process that will rule out any ap­pli- cants which do not ful­fill the con­di­tions re­quired, the main one be­ing that the com­pa­nies are sus­tain­able, with oper­at­ing prof­its.

All debts will be en­tered into the sys­tem, in­clud­ing those con­cern­ing value-added tax or salary tax, with the ex­cep­tion of so­cial se­cu­rity ben­e­fits and third-party levies. It will also be pos­si­ble for en­trepreneurs to en­ter per­sonal debts (such as a mort­gage loan) too.

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