ECONOMY

Gov’t going after payable expired debts

Following strong pressure from its international creditors, the government has started to separate expired debts into two groups, those that can be repaid and those that cannot, so that the monitoring mechanism can focus on cases that will bring immediate results and bolster state revenues.

This is included in a draft law prepared by the Finance Ministry concerning the capital market.

The bill also settles issues related to the monitoring mechanism’s organization while fines will be cut to a fifth for those who show compliance.

Expired debts amount to 55.5 billion euros, but according to an International Monetary Fund report no more than 20 percent of that can be collected. Uncollectible debts will enter a special file for 20 years and will then be written off, unless debtors are found to have assets, which would lead to the reopening of their cases.