ECONOMY

New plan for debts will be income-based

A new repayment scheme being drafted by the SYRIZA-led government for the settlement of debts to tax authorities and social security funds provides for a maximum of 100 installments, like current legislation, but states that these should not exceed 20 or 30 percent of a debtor’s annual income last year.

Installments will contain a monthly interest rate of 0.5 percent without any other penalty, while debtors who repay 15 percent of their total debt will have the right of recourse to courts.

Sources say that Alternate Finance Minister Nadia Valavani will in the next few days have completed the clauses of the new bill so that it is tabled immediately in Parliament. The plan, which is still in the stage of technical processing, will provide for the inclusion of all debts that expired by December 31, 2014.