BUSINESS

Private debt sum exceeds Greece’s GDP

EVGENIA TZORTZI

TAGS: Economy

The examination of expired private debts in Greece reveals that everyone owes money to everyone, more or less, and all together to the state, the expired debts to which come to 90 billion euros.

About 2 million Greeks have expired debts from consumer loans and credit cards, adding up to 15 billion euros. Another 420,000 people have nonperforming mortgage loans amounting to 26 billion euros, and 350,000 professionals and very small enterprises have bad loans of 15 billion euros, according to data seen by Kathimerini.

If all that is added to the borrowing of medium-sized and large companies, with bad loans of some 45 billion euros between them, then the debts of the private sector in Greece exceed the country’s gross domestic product, to reach almost 200 billion euros – an amount clearly impossible to be paid off in the foreseeable future.

The analysis of the debts to the state shows that the vast majority of the 6 million taxpayers, ie some 4.2 million people, owe amounts up to 20,000 euros each, which could have been inducted into a payment plan had tax policy not been restricted to the imposition of new taxes and the creation of fresh debts.
 

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