The new out-of-court debt repayment mechanism was launched on Tuesday, giving citizens the ability to repay arrears in up to 240 installments against all their creditors (public and private entities) and, under conditions, in up to 420 installments to banks. A capital haircut is also provided for, in the case of such an agreement between the parties.
Settlements will now be arranged automatically – without the intervention of an employee and without any cost or red tape – through the use of an algorithm online.
“This system will help thousands of our fellow citizens who have been trapped in their private debt for years. It is a revolutionary system,” Minister of Development and Investments Adonis Georgiadis said on Monday.