ECONOMY

Debts in new payment plan top 2 bln euros

A new tax program which allows people with debts to the tax authorities and social security funds to pay them off in a maximum of 100 installments has seen arrangements drawn up for arrears of more than 2 billion euros, according to official figures.

The applications deadline for the new program is March 31 and the tax authorities as well as the administrations of social security entities are expecting an increase in interest as that date approaches, although the growth rate reversed in recent days.

The Center for Social Security Debt Collection (KEAO) reported that payments for debts adding up to 785 million euros had been arranged by the end of December, against a forecast 1 billion euros.

The latest data from the General Secretariat for Public Revenues showed that 150,000 tax debtors have applied to enter the new repayment program, with approved applications adding up to over 1.3 billion euros. State coffers have already received 90 million euros from the first few installments. Still, new expired debts (those created in the period from January to November) reached 12.5 billion euros.