Of Chrysostom Chufi

Extension of the correction of debt regulation to municipalities is being examined by the Ministry of the Interior. In 3 days, January 31st, the deadline for thousands of taxpayers expires normally because the deadlines for other liabilities expire at the end of the month. Requests for extension to the competent ministry have been raining in recent days and his official commented on skai.gr that ‘Plus extension’. If finally decided, the duration of the extension will be decided in the coming hours but the most optimistic information says it could reach up to 6 months.

An extension would be a manna from heaven for many taxpayers who on January 31 have to pay an ENFIA and income tax and possibly VAT or insurance contributions or other current liabilities along with the first installment of debts to the Local Authorities.
But it will also favor the municipalities themselves in order to increase the collection of debts of more than € 3.6bn amidst many problems. Workload problems as debtors are hundreds of thousands and difficulties in their service are even the largest municipalities and problems in logistical infrastructure as it is not possible to electronically pay (IRIS, RF).

The arrangement concerns debt to Local Authorities that have been confirmed by October 31, 2024 and enables the debtor (natural or legal person) to set them in up to 60 installments with a minimum dose of 50 €.

But its great advantage is that it provides for a huge haircut of increases and fines that can reach 95% for vulnerable debtors. This group may after request reduce interest and surcharges to a percentage:

  • 95% for one -off payment
  • 85% for payment in 2 to 6 installments
  • 80% for repayment in 7 to 12 doses
  • 75% for payment in 13 to 60 installments

In the arrangement, debts may also be subject to the date of application:

  • Are suspended, administrative or by law
  • Have been subject to a previous arrangement or facility of partial payment, which is in force. Submission to the new arrangement means loss of benefits of the previous one while the amounts paid are not refunded
  • They have not been confirmed, because they are pending for any judicial dispute to any extent, provided that, in the latter case, the debtor resigns the remedies or means.
  • The borrower is informed whether or not he or she enters the arrangement by registered letter if he has applied for writing or by email whether he made the application electronically.

Payment, whether the one -off amount or the first installment, is made within 3 business days from the day the debtor learns to be subject to the regulation, otherwise the arrangement is automatically repealed. The next installments are paid until the last business day of the respective month, without the debtor’s notice.

The delay in payment of a installment involves the charge of 5% on the amount of the installment, from the day after the day that it should be paid.

In the event of the payment of two consecutive installments or three installments in total, the arrangement is discontinued and the debts are re -established, together with the fines and surcharges that have been deleted.

For debts over 10,000 € it is possible for the debtor to integrate his debt to the out -of -court mechanism.