So­cial se­cu­rity debt grows

Ar­rears in­creased by 827 mil­lion in Q2, with to­tal now at 23.3 bil­lion eu­ros

Kathimerini English - - Front Page -

Ar­rears to so­cial se­cu­rity funds in­creased by 827,180,068 eu­ros in the sec­ond quar­ter of the year, due to peo­ple’s in­abil­ity to keep up with ex­ist­ing debt set­tle­ment plans and the fa­tigue of those who un­til now had been able to meet their obli­ga­tions.

Ac­cord­ing to a report yes­ter­day by the Cen­ter for the Col­lec­tion of So­cial Se­cu­rity Ar­rears (KEAO) for the sec­ond quar­ter if 2017, the spike in over­due debts to so­cial se­cu­rity funds put the to­tal out­stand­ing amount at 23.3 bil­lion eu­ros.

The ris­ing fig­ure has been at­trib­uted to ex­ces­sive in­creases in con­tri­bu­tions and taxes, mak­ing it ex­tremely dif­fi­cult for the state to draw fresh rev­enues.

More specif­i­cally, 533.7 mil­lion eu­ros of this spike re­lated to an in­crease in prin­ci­pal debts, while 293.4 mil­lion eu­ros came from in­creases in sur­charges. In the sec­ond quar­ter, KEAO added 205,980 new debtors to its lists, with debts to­tal­ing 473.4 mil­lion eu­ros.

The KEAO report shows that ef­forts to help peo­ple set­tle their debts are fail­ing. Of the 203,724 debtors who came to an ar­range­ment to pay out­stand­ing fees in in­stall­ments, by the end of June only 57,217 were still pay­ing. Of the 42,979 who dropped out of the most benev­o­lent set­tle­ment, which al­lowed for pay­ment in 100 in­stall­ments, 68 per­cent had been obliged to pay only be­tween 50 and 300 eu­ros per month but still could not keep up with pay­ments.

KEAO has man­aged to collect 436.2 mil­lion eu­ros since the be­gin­ning of the year. In the sec­ond quar­ter it sent out 14,830 per­sonal no­tices. It has sent 594,261 such no­tices since it launched op­er­a­tions in Septem­ber 2013.

The prob­lem did not be­gin with the cri­sis. Of the to­tal 23.3 bil­lion eu­ros that are in ar­rears, 18.68 per­cent, or 4.35 bil­lion eu­ros, ac­cu­mu­lated from dues that have not been paid since 2010.

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