Greece debt settlement: 72-installment program sees initial uptake

Greece has implemented a new 72-installment regulation allowing individuals and businesses to settle overdue debts incurred up to December 31, 2023. The program features an interest rate of 5.84% and a minimum monthly installment of 30 euros. Participation offers a suspension of seizures and auctions.

Initial reports indicate approximately 20,000 applications have been submitted, including 10,000 for tax debts and 9,000 for EFKA (social security) debts. While this number is small compared to the potential 1.3 million individuals and 284,000 businesses eligible to participate, officials expect a significant increase in applications following the summer holiday period.

A primary obstacle for debtors is a prerequisite requiring that any debts incurred from January 1, 2024, onwards must already be paid or settled through another regulation. This requirement creates a financial burden for households and professionals who must simultaneously manage old debt installments, new debt settlements, and current tax obligations such as VAT and income tax.