Greece Weighs Revival of 120-Installment Debt Scheme for Small Businesses

Government eyes expanded repayment plans for overdue EFKA contributions arsenic unit mounts connected SMEs and freelancers

Greece’s economical squad is considering a important overhaul of its indebtedness repayment framework, including thereintroduction of the 120-installment schemefor overdue contributions to the country’s main societal information fund,EFKA. The inaugural aims to supply alleviation to nearly500,000 tiny and medium-sized enterprises (SMEs) and freelancersstruggling with debts of up to €10,000.

Extended Installments Under Review

Currently, taxpayers tin settee arrears in24 oregon 48 monthly installments. Under the caller plan, this ceiling would emergence to48 and 72 installments, portion those who antecedently defaulted connected the 120-installment programme would beryllium allowed to re-enter, provided they marque adown outgo equivalent to 3 monthly installments.

Draft proposals outline a two-tiered approach:

• Up to 120 installmentsfor debts beneath €10,000.
• Up to 72 installmentsfor debts betwixt €10,000 and €15,000.

Eligibility volition necessitate a lump-sum outgo of10% of missed installmentsto reactivate the scheme.

SMEs Under Strain

The request for broader indebtedness alleviation is underscored by a caller survey from theAthens Chamber of Small and Medium-Sized Industries (BEA), showing thateight successful 10 SMEs cannot work their obligations, whilesix successful 10 person raised pricesover the past twelvemonth to sorb outgo pressures — fueling broader inflationary concerns.

Meanwhile, unpaid societal information contributions person ballooned to€50 billion, prompting authorities to accelerate postulation efforts. This fall, a tender volition invitation backstage firms to assistEFKAand theCenter for the Collection of Social Security Debt (KEAO)in designingtargeted, individualized repayment schemesbased connected debtor profiles.

Pensioners’ Debt Relief Limited

The existent model for insured workers — chiefly freelancers and farmers — remains limited. Though eligible for indebtedness colony via partial deductions from aboriginal pensions, less than8,000 applicationshave been filed truthful far, with onlyjust implicit fractional approved.

The conditions stay strict:

• Debts indispensable not transcend €30,000 (€10,000 for erstwhile OGA farmers).
• Applicants indispensable beryllium astatine least67 years old, or62 with 40 years of security contributions.
• Applicants indispensable person astatine least20 years (6,000 days) of contributions paid, andbank deposits beneath €12,000(€6,000 for OGA-only debtors).

Failure to conscionable these criteria leaves galore pension applicants locked retired of settlement, delaying status and adding fiscal pressure.

Balancing Debt Relief with Fiscal Stability

The government’s situation is twofold: toease liquidity pressureson tiny businesses that signifier the backbone of the economy, portion besides ensuring thatEFKA’s equilibrium expanse remains sustainable. Officials are expected to finalize the caller model successful the coming months, amid increasing calls from manufacture groups for“more generous and lasting solutions.”

Source: pagenews.gr

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