By Chrysostomos Tsoufis

In an effort to focus on the debts that can really be collected and not to spend forces on… chimeras, AADE is changing the criteria and conditions under which a debt can be considered uncollectible.

By decision of the head of the Authority Giorgos Pitsilis, a debt can be considered uncollectible even if the debtor or the co-obligor has property criteria under specific physical conditions for debts up to €2 million:

1. The value of the rights of the debtor and the co-debtors are of very little value and do not exceed 5% of the debt and up to the amount of €100,000.
2. In the event that the value of the rights exceeds €100,000, the amount of the debt arising after deducting twice the value of the rights is defined as uncollectible.
For example, for a debt of €1 million with the debtor’s assets of €110,000, the inadmissible debt is calculated as follows: 1,000,000-220,000=€780,000

The above also applies in the case of business debts for which a period of at least 10 years has passed since their entry into a special liquidation regime and which debts were incurred before the start of liquidation. Their assets and the property of the co-obligators cannot exceed the above amounts.

3. A debt is defined as uncollectible when the amount of the movable property of the debtor and his co-debtors is very small in relation to the amount of the debt and in any case does not exceed €30,000.
4. If the debtor or co-obligor died without assets and the survivor, any children and testamentary heirs, renounce the inheritance.

Debts are classified as uncollectible in order of seniority, from the oldest debt to the newest

According to the general criteria for the characterization of a debt as ineligible, the following must cumulatively apply:

  • The investigations that show that there are no assets or that the process of taking enforcement measures have been completed.
  • Criminal prosecution has been filed or cannot be prosecuted
  • There is a report from a special auditor of AADE which certifies the above and that it is objectively impossible to collect the debt

According to the updated data of AADE, by February the total debts to AADE reach €107.1 billion, of which €26.2 billion are currently considered uncollectible