Friday Jan 30, 2015 Search
Weather | Athens
16o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Plans to deal with private debts

 Gov’t prepares mechanism that will settle the problem of money owed to the state and other entities

By Dimitra Manifava

By mid-August the government intends to present a proposal to deal with the huge private debt in Greece that has now reached the same amount as the country’s gross domestic product, a top Development Ministry official said on Tuesday following a meeting between the representatives of the country’s creditors and the Government Council for the Management of Private Debt.

The proposal for the extrajudicial management of debts will initially concern enterprises and then households, while its characteristics must include speed, flexibility, a zero effect on the capital adequacy of banks, and the elimination of moral hazard in the settlement of debt mays.

The aim is to deal with the entire private debt – i.e. not just the money households and corporations owe the banks, but also debts to the state, social security funds, suppliers and employees. In this context, in order to facilitate extrajudicial settlements, the government is considering passing a law by which if one-third of a company’s creditors approve a debt restructuring plan and business plan, then the remaining creditors will be obliged to go along with it.

What became clear after Tuesday’s meeting was that the mechanism will have a temporary and not permanent character. “Obviously this will not be a permanent system. We need an extraordinary mechanism for an extraordinary problem,” said a senior Development Ministry official.

The questions of zero effect on banks and the minimizing of moral hazard have been strongly cited both by the country’s creditors and the banks. “We do not want canny debtors to take advantage of honorable people,” the same ministry official said.

Concerning the state debt, the Public Debt Management Agency (PDMA) on Tuesday sold three-month treasury bills to the amount of 1.625 billion euros at a rate of 1.75 percent, compared with a 1.80 percent rate a month earlier. The 13-week T-bills will be used to cover those maturing this Friday.

ekathimerini.com , Tuesday Jul 15, 2014 (22:47)  
Greek meltdown splits investors translating Tsipras
Capital flees Greece at fastest pace since 2011
Why Greece went left while Europe turns to right
Greek government´s signals very mixed, ECB´s Jazbec says
Supreme Court prosecutor orders probe into Lesvos bullying incident
Supreme Court prosecutor Efterpi Koutzamani on Friday ordered an urgent investigation into the bullying of a nine-year-old boy on the island of Lesvos who was left to hang in the basketball ...
Monastiraki restaurant fire prompts panic, restricted before spread
Firefighters managed to bring a large blaze that broke out at a restaurant in Monastiraki, central Athens, under partial control by late morning on Friday. The fire service dispatched 21 fir...
Inside News
SOCCER
Olympiakos draws AEK in Cup quarterfinals
The dream draw of Olympiakos vs AEK in the quarterfinal materialized on Friday, as two of the capital's three giants will face off in a two-leg tie for a place in the semifinals of the Greek...
BASKETBALL
Below-par Olympiakos succumbs to Efes
The winning streak of Olympiakos in the second group stage of the Euroleague ended on Thursday in Turkey, as Anadolu Efes outclassed the Reds in the second half to win 84-70. Olympiakos had ...
Inside Sports
INTERVIEW
SYRIZA must come up with ‘pragmatic solutions,’ Schulz tells Kathimerini
“SYRIZA must realize that it is now the Greek government, not a party running an election campaign,” European Parliament President Martin Schulz, the first European official to visit Greece ...
COMMENTARY
Strange haste
The members of the new government must have a lot of confidence in themselves. Several days before announcing his program, Prime Minister Alexis Tsipras and his cabinet have opened up a mult...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek meltdown splits investors translating Tsipras
2. Supreme Court prosecutor orders probe into Lesvos bullying incident
3. Olympiakos draws AEK in Cup quarterfinals
4. Capital flees Greece at fastest pace since 2011
5. Monastiraki restaurant fire prompts panic, restricted before spread
6. Why Greece went left while Europe turns to right
more news
Today
This Week
1. SYRIZA must come up with ‘pragmatic solutions,’ Schulz tells Kathimerini
2. Why Greece went left while Europe turns to right
3. Greek government's signals very mixed, ECB's Jazbec says
4. EU's Schulz: Greece should follow EU line on Russia
5. Monastiraki restaurant fire prompts panic, restricted before spread
6. Capital flees Greece at fastest pace since 2011
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. Greek Elections 2015: The day after | LIVE
5. Poll shows SYRIZA leading ND by 4 pct
6. SYRIZA's win will test institutions
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.