ECONOMY

Cash injection from state debtors

More than 120 million euros has entered state and social security coffers in the last few days thanks to two payment schemes for the settlement of expired debts. At the same time budget revenues for the first 20 days of March are within target, although it is the last few days of the month that will be key.

According to the latest data, the express payment program that ended on Friday brought the state some 110 million euros in just one week, mostly from very old debts that had their penalties reduced or written off.

After the Easter holidays a new, more favorable 100-installment payment program will come into action. The Finance Ministry expects revenues of between 500 and 800 million euros over the course of the year. Alternate Minister Nadia Valavani said the online platform for applications will open immediately after Easter, which is on April 12.

Some 3,000 settlement applications were filed at the Social Security Foundation (IKA) in the first couple of days of the 100-tranche scheme for social security contribution debts. Total debts of 238 million euros have been entered into the plan and the first 11.15 million euros has been paid. Filing of applications to IKA started on Thursday, while applications to other funds will be accepted as of April 2, and up to April 30.

The payment program concerns some 850,000 debtors who owe about 16 billion euros in contributions to the country’s social security funds. When penalties and fines are added, the amount due rises to 22 billion euros. The Labor Ministry’s target is to collect 1.46 billion euros from expired and new contributions within 2015.

On Thursday, the first day of the IKA debt repayment program, there were some 1,300 applications for debts of 150 million euros, with 6 million euros already paid. On Friday, 1,666 applications were submitted concerning debts of 88 million euros, with 5.15 million entering IKA’s coffers on the second day of the scheme’s application.