BUSINESS

IMF unhappy over social security debt collection

By Roula Salourou

The International Monetary Fund is asking Athens to impose strict rules on the operation of the Center for Collection of Social Security Arrears (KEAO) as well as a series of measures including the activation of electronic confiscations and making it easier for the bank deposits of social security debtors to be seized.

In a report seen by Kathimerini, the IMF also notes the failure of debt collections, expresses doubts about the targets set for the end of 2014 being met, and insists on the use of debt collection companies even in the case of debts below 5,000 euros.

The report by IMF expert Patrick de Mets on the progress of the debt collection center clearly conveys the author’s impression that the efforts to have the debts settled has failed. While the center, which manages debts of 10.59 billion euros from 210,260 debtors, says that the countable targets have been met, the IMF expresses reservations both on the methods used separately by each fund and on the actual results.

The IMF insists on immediate action regarding debts below 5,000 euros owed to social security funds, which in total add up to some 8 billion euros.

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