ECONOMY

Repayment of pandemic debts

repayment-of-pandemic-debts

More than 2 million citizens and corporations will get a chance to rearrange their debts to the tax authorities and the social security funds that they ran up during the pandemic in the new payment scheme the government plans to offer, sources say. It will also provide for the repayment of all debts generated since March 2020 in 36 interest-free tranches or in 72 installments incurring an average interest rate of 2.5%.

The new arrangement will be open to all corporations included in the sectors formally perceived to have been affected by the health crisis and the lockdowns, landlords who endured forced rent reductions, the unemployed who registered with the Manpower Organization (OAED) during the pandemic, and furloughed employees.

Debtors will be able to rearrange not only the tax obligations that were suspended during the pandemic, but also the income tax of the previous year, the Single Property Tax (ENFIA) as well as extraordinary taxes, such as inheritance and parental concession levies.

The matter “has been discussed with the [European] institutions and we have practically reached a conclusion,” Finance Minister Christos Staikouras told state broadcaster ERT on Wednesday.