The plots of private debt are becoming even more … suffocating as the budgets of households and businesses are burdened with an additional € 107 billion of non-performing loans (to banks and funds).
By Chrysostomos Tsoufis
Danger bell for the impending raising interest rates strikes in its report on the course of the Greek economy the Budget Office of the Parliament. The previously announced change in the ECB ‘s stance may contribute to undermining the viability of households and businesses and slow down growth rates.
Households and businesses that are already under significant pressure as they owe almost € 155 billion to the tax authorities (€ 112.5 billion), insurance funds (€ 43 billion).
From the beginning of the year as the support measures implemented during the pandemic period are withdrawn and as inflation is rampant, taxpayers have left unpaid € 3.5 billion in additional taxes compared to the first 4 months of 2021. € 1.2 billion relates to income tax – in fact, the tax compliance index in terms of its collection was found in April at only 53.5% which is the lowest in the year, in essence ie 1 in 2 euros of income tax was not collected. € 1.1 billion comes from VAT. A total of 3.9 million households and businesses owe € 112.5 billion to the tax authorities alone, of which € 87.1 billion are considered receivables. Nearly 1.98 billion debtors are facing auctions and foreclosures, 1.35 million of which already exist.
More than 2 million debtors owe up to € 500 and do not risk compulsory collection measures. In fact, about 850,000 have no debt greater than € 50. 1.8 million owe from € 500 to € 100,000. 8,827 VAT are owed more than € 1 million each and a total of € 90 billion. In other words, only 0.2% of the debtors collect 80% of the total debt. In this category of large debtors, 60% are businesses and 40% are individuals.
Respectively, the debts to the insurance funds have so far increased by € 1.8 billion. According to the latest data published by EFKA, 2.4 million individuals and companies are approximately € 42.8 billion. They were added to the EFKA notebooks within almost a year half a million new debtors. In contrast to what happens with tax debts, here 44% of debts are located in the range between € 10,000 and € 100,000.
The plots of private debt are becoming even more … suffocating as the budgets of households and businesses are burdened with an additional € 107 billion of non-performing loans (to banks and funds).
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