Sunday March 29, 2015 Search
Weather | Athens
14o C
09o 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)  
Fitch downgrades Greece amid bailout uncertainty
Bank accounts continue to bleed
Hania and Athens are the top picks for Easter visitors
Landlords to pay tax on unpaid rent
Disabled convicts to be freed early
A bill allowing prisoners with serious disabilities to be released early is due to be submitted to Parliament next week despite objections from some opposition parties. The would-be legislat...
Greek energy minister starts two-day visit to Russia on Monday
Energy Minister Panayiotis Lafazanis is due to meet his Russian counterpart Alexander Novak and the chief executive of energy giant Gazprom, Alexey Miller, in Moscow on Monday. Lafazanis’s m...
Inside News
BASKETBALL
Greens live dangerously in Istanbul
Panathinaikos played with fire in Istanbul, but still managed to beat Galatasaray 86-84 on Friday and climb to the third sport of its group two games before the end of the Euroleague top-16....
SOCCER
Greek federation backs injured Holebas
The Greek soccer federation on Friday insisted that international defender Jose Holebas had been dropped from team training in Austria because of injury and not for any other reason. Media r...
Inside Sports
COMMENTARY
Let´s change the subject
Let’s talk about the weather. The cloudy skies, the rain, storms and humidity, the overall heavy atmosphere. It’s better to think of that than politics and politicians, whatever cuts they ma...
EDITORIAL
Too little, too late?
Many of the measures that are rumored to comprise part of the list that the Greek government is expected to submit to the European Commission, European Central Bank and the International Mon...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Disabled convicts to be freed early
2. Greek energy minister starts two-day visit to Russia on Monday
3. Opposition tells Tsipras to get control of his party
4. Vitsentzos Kornaros passenger ferry finally on its way
5. Foreign laborer dies after falling from 3rd floor of Iraklio building
6. A 5.3 Richter quake rattles area between Crete and Kasos
more news
Today
This Week
1. Fitch downgrades Greece amid bailout uncertainty
2. Opposition tells Tsipras to get control of his party
3. Let's change the subject
4. Greek energy minister starts two-day visit to Russia on Monday
5. Too little, too late?
6. Disabled convicts to be freed early
Today
This Week
1. Next Monday is D-Day for state funds
2. PM faces Merkel amid race to detail reforms
3. Some more equal than others
4. Greece to present reforms by Monday, says gov't spokesman [Update]
5. Looking at the Chinese model
6. Greece optimistic on deal with euro area next week
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.