Saturday August 30, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Plans to deal with private debts

 Govt 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 countrys gross domestic product, a top Development Ministry official said on Tuesday following a meeting between the representatives of the countrys 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 companys 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 Tuesdays 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 countrys 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)  
Disappearing inflation heightens Draghi concerns
Ministry launches work experience program for unemployed graduates
Tax burden in Greece among EUs heaviest, study reveals
Coalition bent on protecting weaker groups
Traveling on public transport in Athens gets cheaper
Commuters will pay 20 cents less for tickets allowing them to use all modes of public transportation in Athens as of Monday, though they will be valid for 70 minutes rather than 90 as was th...
Push made for cuts in education as merger scheme fails
Finance Ministry officials are pressing the Education Ministry to cut costs after it emerged that a program for merging university and technical college departments failed to save 68 million...
Inside News
SOCCER
Tough draw for Greek sides in Europe League Greek stage
Following Thursday nights high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
JUDO
Greek judoka Iliadis triples up as Aguiar stuns Tcheumeo
Greek star Ilias Iliadis claimed his third world title in the under-90kg category in Chelyabinsk on Friday as Brazilian Mayra Aguiar and Colombian Yuri Alvear won gold in the womens under-7...
Inside Sports
COMMENTARY
Keeping an eye on international developments
The Ukrainian crisis may herald the start of a second Cold War, while there is no shortage of analysts comparing the current international climate to that of 1914 in the runup to World War I...
EDITORIAL
A few good men
It gives us a great deal of hope that we have a new batch of mayors and regional authorities, as well as university rectors who represent the voice of reason and prudence and are unafraid to...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Traveling on public transport in Athens gets cheaper
2. Push made for cuts in education as merger scheme fails
3. Govt aims to curb measures, secure loans, allow tax relief
4. DIMAR chief Kouvelis hints about presidency
5. French expert says Crete crocodile in good health, aged 4-7
6. Tensions mar regional ity swearing-in ceremony
more news
Today
This Week
1. A few good men
2. Keeping an eye on international developments
3. Disappearing inflation heightens Draghi concerns
4. Two men drown off Crete coast in strong tides
5. Push made for cuts in education as merger scheme fails
6. Tensions mar regional authority swearing-in ceremony
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. Purification rituals
3. The battle against progress
4. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
5. Athens finalizes Paris talks goals
6. Strong undersea quake occurs off island of Milos, felt in Athens
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.