Extrajudicial mechanism to accept debts to banks too


All debts to banks and the state will be able to enter the extrajudicial settlement mechanism the Economy Ministry has prepared for voting by Parliament, with the exception of the social security contributions that workers owe.

The bill allows for the entry of corporations that had a minimum of 20,000 euros debts by end-2016, and loans that are not related to business activity – such as mortgage loans, despite the disagreement of banks.

The mechanism will also allow freelance workers to settle their tax and contribution debts out of court, but not debts to banks.