New arrangement for the repayment of the debts of the pandemic

The new favorable arrangement for the repayment of the debts of the pandemic “locks” on Thursday and will be announced at the beginning of next week by the financial staff of the government.

The Ministry of Finance gives the possibility to the affected debtors of the pandemic to settle overdue debts to the Tax Office with the permanent regulation of 24 to 48 installments, without income and property criteria, according to a decision of the Deputy Minister of Finance A. Vesiropoulos.

According to the decision, the measure concerns those who were on November 1, 2019 included in the old fixed arrangement of 12 or 24 installments but after that date were excluded from the regulation, either because they did not pay two or more consecutive installments or because they left unpaid or unregulated other their newer debts.

In particular, for debts incurred during the pandemic and which will begin to be repaid from 1 January 2022, the arrangement will not change the strict spirit of the existing one, which provides for repayment in up to 24 interest-free or up to 48 interest-bearing installments, and which allows integration only to businesses and households affected by the pandemic crisis.

Thus, taxpayers of four categories will be able to join the new regulation:

  • Companies that suspended their operation by state order.
  • Businesses, freelancers and the self-employed who showed a decrease in turnover and are included in the lists of affected KAD (business activity code).
  • Employees who were on suspension and received special purpose compensation.
  • Property owners who have received reduced rents.

The number of installments for debts that arose after March 2020 and will be “frozen” by the end of 2021, is likely to be 60, although at the table of discussions with the institutions has been found the scenario that provides for the repayment of debts in up to 72 installments.

The number of installments will be determined separately for each debtor, based on the amount of debt and its financial situation.

The installments will be interest-bearing and until the last moment the scenario of interest-free installments for those who choose to repay the debts of the pandemic in 24 installments is being examined.

At the same time, the new regulation will announce the revival of the old regulations of 100 and 120 installments, for the debtors who were affected by the pandemic and lost their regulations.