Corporate debt easing may expand to tax arrears

Corporate debt easing may expand to tax arrears

The General Secretariat for Public Revenue is currently working feverishly on the terms and conditions for settlements – including write-offs – of debts that corporations owe to the state, ahead of the return of the creditors’ representatives next week and the completion of the bill on out-of-court settlements.

The draft law concerning the settlement of debts that sustainable companies owe to banks, tax authorities and social security funds is expected to be tabled for discussion with the creditors on Monday, with the aim of sending it immediately to Parliament for voting.

Talks will focus on the way debts are to be settled and whether the debts companies have to the state could be subject to a haircut. Banks are insisting on the participation of the state in any haircuts as a necessary condition for their agreement to the content of the bill and for the practical application of the law.

The secretariat, which during the previous stage of negotiations with the creditors had serious reservations concerning the scope of possible write-offs, now appears to be much more flexible, as an inside source told Kathimerini that “it aims to find a solution that will assist any enterprises that can survive after the settlement of their debts.”

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