EFKA pension debt settlement sees low participation in Greece

Only 3.76% of eligible debtors have utilized the EFKA pension settlement scheme in Greece, which allows for retirement alongside the repayment of social security debts. Out of 328,701 registered debtors, only 12,377 applications have been submitted. Of these, 7,345 were approved, 3,160 were rejected, and 1,872 remain pending.

Structural barriers are cited as the primary reason for low participation. To access the scheme, debtors must waive bank secrecy to allow for account monitoring. Furthermore, the repayment terms impose significant financial strain: the process requires a 60% withholding of the monthly pension until the debt is reduced from €30,000 to €20,000 for the self-employed, or from €10,000 to €6,000 for farmers. Only after these thresholds are met can the remaining balance be paid in up to 60 monthly installments.