ECONOMY

Extrajudicial mechanism to continue in 2019

extrajudicial-mechanism-to-continue-in-2019

The out-of-court corporate debt settlement mechanism is set to be extended for another year, until December 31, 2019, Kathimerini understands.

The extension will be introduced through an amendment to be tabled in Parliament next week, following the vote on the 2019 state budget.

Nevertheless sources say the amendment will not include any provisions for the inclusion in the mechanism of debts created over the course of 2018.

The latest revision, introduced this summer, provided for the inclusion of debts created up to December 31, 2017.

After a slow start to the extrajudicial mechanism in August 2017, the processing of applications has accelerated thanks to interventions on an institutional and technological level during the summer.

The improved platform, which started operating in its new form in mid-September, allows for the automatic retrieval of 11 certificates required from applicants for the system that spreads their dues into as many as 120 tranches while slashing fines and penalties by up to 95 percent.