By Vangelis Dourakis

Water bills, fines, municipal fees and other debts to the Local Government can be settled in up to 60 installments and with a “haircut” of surcharges of up to 95%, thousands of debtors. The specific regulation is active, but the debtors should know that there is a specific deadline within which they should submit their application. In fact, they can in this way “freeze” any enforcement measures against them for the debts in question.

Specifically, with the recently voted N. 5143/2024 (Government Gazette 161 A) entitled “Regulations for land border posts, the strengthening of Local Government Organizations and other provisions”, provisions are introduced that enable vulnerable and non-vulnerable debtors to settle all kinds of debts in installments to the OTAs (Local Government Organisations: Municipalities, Regions and their legal entities).

Payment in 60 installments and “haircut” of increments

In particular, with article 25 of the aforementioned Law, the possibility is provided for natural persons who meet the criteria of the vulnerable debtor and have issued the relevant certificate (through the digital portal gov.gr), to settle all kinds of their debts to the Municipalities, the Regions and their legal entities, which have been certified until 31.10.2024, but also to be exempt from surcharges and interest late payment, as well as fines due to late submission or non-submission or inaccurate declaration or due to non-payment of fee.

In particular, the “haircut” percentage of the surcharges, in the case of debt settlement, is set as follows:

(a) if paid in a lump sum, with ninety-five percent (95%) relief;
(b) if paid in two (2) to six (6) installments, with an eighty-five percent (85%) exemption;
(c) if paid in seven (7) to twelve (12) installments, with an eighty percent (80%) exemption, and
(d) if paid in thirteen (13) to sixty (60) installments, with seventy-five percent (75%) exemption.

The same article also provides for the possibility of settlement and repayment in up to sixty (60) installments of any type of debt to the Municipalities, Regions and their legal entities, by natural persons who do not belong to the vulnerable debtor category, as well as by legal entities, provided that these debts have been confirmed by 31.10.2024, provided that the debtor’s application for inclusion in the arrangement is submitted by 31.1.2025.

When enforcement proceedings are suspended

According to the explanatory statement of the relevant law, this new regulation seeks, on the one hand, to facilitate the debtors, through the introduction of the possibility of settling their debts and, on the other hand, to improve the collectability of the debts and, subsequently, the financial situation of the debtors. municipalities and regions.

The regulation, in addition to the possibility of paying the fees in installments, also includes a percentage exemption from late payment surcharges and interest for vulnerable debtors.

In addition, when enforcement proceedings are in progress for the debt being settled, the suspension of enforcement is foreseen, as long as the settlement is served.