Wednesday September 3, 2014 Search
Weather | Athens
28o C
22o 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)  
Helexpo sell-off plan to be ready by mid-October
Maniatis talks energy with Washington’s man in Athens
Task force to examine cases of extreme taxation, customs issues
Hotels hike prices by 10 pct in H1 of 2014
Report points to suspicious clinic charges to EOPYY
A quarter of all the expenses submitted last year by private health clinics to EOPYY, the country’s largest healthcare provider, have been deemed suspicious and in need of further investigat...
New rector seeks to introduce ID checks at University of Athens
One day after his swearing-in ceremony was marred by protests against budget cuts and the expulsion of thousands of so-called eternal students, the new rector at the University of Athens, Th...
Inside News
Grateful Saviola thanks Olympiakos, joins Verona
Former Argentina international Javier Saviola has thanked Greek champions Olympiakos for the "beautiful moments" during his season-long stint in Greece as he left the club to join Serie A ou...
SOCCER
Greece defender Papadopoulos fires parting shot at Michel
International defender Avraam Papadopoulos suddenly quit Olympiakos on Monday to join Turkish club Trabzonspor, and fired a parting shot at Olympiakos manager Michel putting the blame on the...
Inside Sports
COMMENTARY
Poise matters
A politician who wishes to demonstrate that he is a leader needs two fundamental characteristics: poise and the ability to rely on his instinct. Poise has been a prerequisite since long befo...
EDITORIAL
The right decision
A year ago, when former Health Minister Adonis Georgiadis announced that auditing companies were set to begin investigating expenses submitted by certain private health clinics to social sec...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Helexpo sell-off plan to be ready by mid-October
2. Maniatis talks energy with Washington’s man in Athens
3. Task force to examine cases of extreme taxation, customs issues
4. Hotels hike prices by 10 pct in H1 of 2014
5. Pension system nears breaking point
6. Report points to suspicious clinic charges to EOPYY
more news
Today
This Week
1. The right decision
2. Poise matters
3. Politicized archaeology
4. Rain and storms with hail expected in many parts of Greece
5. Reforms to dominate Greek talks in Paris, debt relief talks later, says source
6. New committee formed to assess progress of deregulation in closed-shop professions
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Strong undersea quake occurs off island of Milos, felt in Athens
4. Hardouvelis, ECB executive discuss bank program, stress tests
5. Greek quest for debt relief faces hurdles in Paris
6. Prospect of Greek grand prix back on the agenda; huge investment needed
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.