Within the month, will be tabled in Parliament, according to the estimates of the ministry of Economy, the bill for an out of court settlement which provides for: “haircut” on loans, without limit, deletion of debts to the Public other than VAT and insurance contributions.
In an interview with Nation on Sunday, the minister of Economy Dimitri Papadimitriou, states that the deposit of the relevant bill will be in the House until the end of January, stressing that the new institution would qualify for all the highly indebted, at the time of publication of the law, business, without excluding the individual and the self-employed, as long as it’s viable.
There is no limit as to the amount of write-offs and the arrangements of debts in instalments, but will be exempt from VAT, withholding taxes and insurance contributions of employees.
At the same time, mr. Papadimitriou sends a clear message to the “strategic deadbeats”: “The new regulatory framework will not become a free pass from business-monuments of mismanagement”. Estimates, I don’t, you will be able to submit applications to the mechanism of 403,000 small and large companies and self-employed “so that the debtor and creditors to formulate freely the restructuring agreement”.
Practically, the process starts with the application , which will be accompanied by an original proposal for debt settlement as well as by analytical finances and assets of the company to the Special Secretariat for the Administration of a Private Debt then to be defined, a coordinator of the processes of negotiation which will ultimately prepare and the practical completion of the process.
As noted by the minister, “aspects of the bill are being negotiated, however, is expected within the month to be submitted for vote”.
Also, as mentioned by April I’ll work structures to support borrowers in every region of the country while the ministry is processing a bill for the establishment of an Independent Authority which, by incorporating international practices will run as a service for the evaluation of the creditworthiness of natural and legal persons and it is estimated that the new body will operate from September 2017.
Source
Out-of-court compromise: The debts and loans that are “clipped”
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