Personalized Debt Regulations for Funds and Tax Authorities with Objective Criteria

The Greek government is planning personalized yet objective criteria-based regulations for managing debts owed to social insurance funds and possibly the tax authority. The framework for future debt regulations will be based on two pillars: out-of-court settlements and debtor profiling by private companies. According to recent information, a private company may propose settlement options to debtors, but these must adhere to objective income and asset criteria rather than arbitrary decisions. Specific scales of declared income, real estate, and household size will determine eligibility for such settlements. Debtors could potentially enter into repayment plans lasting up to 240 installments if their debt exceeds €10,000. Additionally, there’s a possibility of waiving penalties or even part of the principal debt. The government aims to ensure that new regulations do not overlap with existing frameworks like the enhanced out-of-court insolvency mechanism. While the initial focus is on debts over €10,000, smaller debts may also be included. For professionals, full penalty waivers after paying the principal debt are being considered. However, employers’ debts are treated differently due to state-supported employee benefits. Following the implementation in social insurance funds, the Independent Authority for Public Revenue (AADE) might adopt similar personalized regulation models with clear criteria.