“Dikes” in the creation of a new generation of debts is trying to set up the financial staff with the recent interventions, which either concern the revival of the old arrangements, or the reward with new arrangements for those who kept “alive” the arrangements in which they had progressed, or relate to the attempted changes to the out-of-court settlement. A few days ago the relevant announcements were made by the Ministry of Finance and within the next week the relevant legislative interventions are expected.

As emphasized by the financial staff, the main aim is to give one more chance to those who lost the arrangements due to objective difficulties, to be consistent in their obligations again, while alongside the new targeted arrangement, debtors’ consistency is actually rewarded.

At the same time, through the attempted changes to the out-of-court settlement, an attempt is made to make the specific tool friendlier for debtors and at the same time to increase the pressure on banks and “red” loan management companies to accept the proposed arrangements.

Let’s take a closer look at all the tools currently on the table for debt settlement as reflected by government interventions

1. Fixed setting:

That is why nothing changes, but remains on the table, as a solution in the event that the debtor cannot make use of another more favorable one, from those that already exist. This arrangement provides for the repayment of debts in 24 or 48 installments, as well as the type of debt. There is no income or property criterion. Let’s see its main features:

* Debts can be settled even before they become overdue.

* Current and regular debts, such as VAT, income tax and ENFIA are settled in up to 24 interest installments. However, debtors should pay particular attention to the fact that the more installments are chosen, the higher the interest rate. This means that if someone settles their debt in up to 12 monthly installments the interest rate rises to 4.37%, for those who pay off the debt in 13-24 monthly installments the interest rate rises to 5.87%.

* Extraordinary debts are settled in 25 to 48 monthly installments with an annual interest rate of 5.87%. Extraordinary debts of households and businesses can be included in this arrangement, such as for example inheritance taxes, fines, interest, surcharges confirmed after audits, etc.

2. Revive 120 doses:

All those who were included in the 120 installment arrangement and lost it until 1-2-2023, will have the possibility to rejoin it by submitting an application until 31-7-2023, provided that they pay two monthly installments doses. The missed payments will be added to the end of the arrangement. In the case where the debtor has other unregulated overdue debts, such as for example unpaid installments from the income tax of 2022 or the ENFIA of the same year, he has the obligation to include them in the permanent arrangement of the 24 installments or if they are extraordinary in this of 48 doses. The deadline for doing so is one month from the validation of the revival of the 120 installment arrangement. The interest rate of the arrangement amounts to 3%.

3. Revival of 36 or 72 doses:

More or less the same applies as for the 120 dose setting. So to rejoin, it must have been lost by February 1, 2023, the application must be submitted by July 31 and at the same time two monthly installments must be paid. In the event that there are other unregulated overdue debts, they must be included in the fixed settlement of 24 or 48 installments within one month from the date of validation of the revival of the settlement. The 36 installments are interest-free and the 37 – 72 installments are charged with an interest rate of 2.5%.

4. Setting – reward for consistent with 36 or 72 doses:

This category can include all those who regularly paid the installments of the 120 or 72 installment arrangements, to which they had joined and at the same time on November 1, 2021, they did not have overdue or unregulated debts. Included are debts that became overdue after November 1, 2021. The minimum amount of the monthly installment is set at 30 euros. The above installments are interest bearing. For those who choose the 36 installments, the interest rate is 4.37%, while for those who pay off the debt in 72 installments, the interest rate is 5.87%. By joining the arrangement, the benefits that the 120 installments arrangement also had (unblocking of bank accounts) apply.

5. Transfer from the fixed arrangement to that of 36-72 installments:

Consistent debtors who created overdue debts after November 1, 2021 and until February 1, 2023 and have already included them in the fixed arrangement of 24 or 48 installments can be included in this category. They will therefore be able, if they wish, to include their debt in the new arrangement of 36 or 72 installments. At the same time, if on November 1, 2021, there are settled debts in the fixed arrangement of 24 or 48 installments which were subsequently lost and at the same time new debts were confirmed, after November 1, 2021, then these new debts can be included in the new arrangement of 36 or 72 installments and at the same time, within a month of the inclusion of the new debts in the 36 or 72 installments arrangement, the fixed debts that were obligatorily lost are again included in the 24 or 48 installments arrangement.

Finally, in the coming days there will be an amendment with improvements to the law on out-of-court settlement, which will make the law friendlier and easier to use for the debtor and more binding for banks and services to proceed with arrangements.