Greek authorities, creditors at odds over debt settlement schemes




The details of state debt settlement schemes – such as the 100-installment scheme introduced last year or the electronic 12-month scheme available at present – are currently the bone of contention in talks between Greek authorities and the institutions, sources said on Tuesday.

For the 100-installment scheme, the creditors want tax payers to drop out of the measure if they miss paying an installment by even a single day, whereas Greek authorities recommend a 30-day leeway before someone loses the right to continue with the scheme.

Finance ministry sources clarified that the creditors have not asked for any change in the interest rate for 12-month repayment schemes. Other sources, however, noted that creditors have asked for tighter eligibility criteria and the extension of the ability to pay debts in installments online to those that are not currently overdue.

Tax-payers can currently arrange to pay their debts in 12 installments online if these are already past due, or when the installment of a current debt is past due. For debts that are not overdue, arrangements to pay in installments can only be made in person at the tax office.

Greek authorities note that adopting the creditors proposal will greatly simplify the process but may also create the risk that large numbers of tax payers will elect to pay by installments and create a gap in revenues during the last two months of the year.

Hellasjournal - Newsletter


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