Greece considers expanding debt installment plan to 120 months

The Greek Ministry of National Economy and Finance is considering significant modifications to the current 72-installment debt restructuring program for tax and EFKA (social security) obligations. Due to low participation rates, officials are evaluating increasing the number of installments to 100 or 120 to reduce the monthly burden on debtors.

Currently, approximately 11,500 applications have been submitted. The program potentially covers debts totaling 95.3 billion euros, affecting over 1.5 million individuals and businesses. However, current limitations have hindered adoption, specifically the exclusion of debts incurred after December 31, 2023, and the inability to transfer existing active settlements into this new framework.

Decisions regarding these changes are expected within the week and may be presented during government announcements at the IMF (International Monetary Fund) meetings. The goal is to provide greater flexibility for taxpayers to manage both old and new debts without risking asset seizures or bank account freezes.