ECONOMY

Checks set to freeze for over 10 weeks

checks-set-to-freeze-for-over-10-weeks

The cashing of thousands of checks in the Greek market is set to freeze for two-and-a-half months, according to a plan the government will table in Parliament next week.

Kathimerini understands that all payment orders such as checks and bills of exchange with a cashing date between November 6 and December 31 issued by corporations or self-employed professionals will be postponed by 75 days. This means that the payment dates of all checks payable in the above period will be extended by 75 days; therefore, if a check is payable on December 10, it will now become payable on February 25.

According to the government’s decision, the measure will concern all companies that were forced to close under state order due to the pandemic and all those that have suffered an annual decline in turnover of more than 50% in the period from April to September 2020.

The 75-day check freeze is set to trigger a chain reaction in the market, so in order to partly tackle the problems generated, the Finance Ministry is considering suspending the tax and social security obligations of the checks’ holders.