ECONOMY

Social security arrears interest to drop from 5 to 3 pct

social-security-arrears-interest-to-drop-from-5-to-3-pct

A provision in new legislation that will be put to lawmakers on Wednesday foresees a two-point reduction to the interest incurred on social security debts, Finance Minister Christos Staikouras said on Monday.

Speaking to Parliament's economic affairs committee, Staikouras said that the bill – which includes reductions to property taxes and improvements to a scheme for settling debts to the state in 120 installments – also outlines a reduction to the interest rate on debts to social security funds from 5 to 3 percent.

Responding to accusations from the opposition that the ENFIA property tax reduction is designed to favor wealthier taxpayers, Staikouras stressed that lower- and middle-income households stand to benefit the most, as just 5 percent of those who will be seeing a drop in their taxes belong in the highest bracket of large property owners.