ECONOMY

Progressively protected bank account for debtors starts in January

progressively-protected-bank-account-for-debtors-starts-in-january

The measure of the progressively protected bank account for each individual or corporation with tax overdue arrears under arrangement will become active as of January 2020. This concerns debtors who have entered any payment plan and have been consistent in meeting their obligations to it.

To secure the right to a protected account, debtors must have made the payment of at least two tranches of any plan (either the standard debt repayment plan of 12 or 24 tranches ,or the long one up to 120 installments) and submitted an online application bearing the account number to be protected from confiscation.

The current protection level of 1,250 euros per account will be increased to the sum of at least the last pair of monthly tranches paid multiplied by 3 or 4.5. Therefore a debtor who has paid five tranches of 500 euros each will obtain a multiplying factor of 3.8 percent and see his protection limit grow to 1,900 euros for his account.

This practically means that debtors of the state will gradually be able to regain control of their frozen bank accounts that have been seized by the state due to their debts even for future inflows.