NEWS

Social security debt grows

TAGS: Economy

Arrears to social security funds increased by 827,180,068 euros in the second quarter of the year, due to people’s inability to keep up with existing debt settlement plans and the fatigue of those who until now had been able to meet their obligations.

According to a report Friday by the Center for the Collection of Social Security Arrears (KEAO) for the second quarter if 2017, the spike in overdue debts to social security funds put the total outstanding amount at 23.3 billion euros.

The rising figure has been attributed to excessive increases in contributions and taxes, making it extremely difficult for the state to draw fresh revenues.

More specifically, 533.7 million euros of this spike related to an increase in principal debts, while 293.4 million euros came from increases in surcharges. In the second quarter, KEAO added 205,980 new debtors to its lists, with debts totaling 473.4 million euros.

The KEAO report shows that efforts to help people settle their debts are failing. Of the 203,724 debtors who came to an arrangement to pay outstanding fees in installments, by the end of June only 57,217 were still paying. Of the 42,979 who dropped out of the most benevolent settlement, which allowed for payment in 100 installments, 68 percent had been obliged to pay only between 50 and 300 euros per month but still could not keep up with payments.

KEAO has managed to collect 436.2 million euros since the beginning of the year. In the second quarter it sent out 14,830 personal notices. It has sent 594,261 such notices since it launched operations in September 2013.

The problem did not begin with the crisis. Of the total 23.3 billion euros that are in arrears, 18.68 percent, or 4.35 billion euros, accumulated from dues that have not been paid since 2010.

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