ECONOMY

Borrowers must settle tax debts before loans

Borrowers wishing to benefit from measures allowing them to have their loans restructured will need to settle any debts to tax authorities first, according to a Development Ministry circular that is to reach banks on Monday.

The regulation concerns salaried workers and pensioners, as well as the self-employed, even if they may have debts to social security funds.

The circular will activate the process of applications by borrowers with debts to banks of up to 150,000 euros, whose total property values do not exceed 250,000 euros (300,000 euros for those with three or more children) and with total deposits or equities for each household that do not exceed 10,000 euros (15,000 euros for households with three or more children). Deposit and equity amounts will be ascertained only via a signed statement by the owner, without any additional documents required.

Documents proving the settlement of all tax obligations will have to be presented to the banks that have issued the mortgage-based loans, along with income tax declarations dating back to 2009, the property declaration form (E9) and the title deeds of borrowers’ properties.