Framework for out-of-court settlement of arrears to the Greek state by businesses finally OK'd

Monday, 17 July 2017 12:37
UPD:12:40
EUROKINISSI/ΚΟΝΤΑΡΙΝΗΣ ΓΙΩΡΓΟΣ

A long-expected framework allowing for the restructuring of arrears owed by private sector companies to the Greek state was finally unveiled late last week via publication in the government gazette, with the "highlight" being a 120-month installment plan.

Mandatory provisions in the bill also include a full commercial assessment of the value of real estate held by the debtor, otherwise the value of property will be assessed through objective tax criteria - the regime used by the tax bureau to impose annual property tax fees.

Additionally, all of private entity's other assets must be assessed, such as securities, deposits, shares and arrears owed to the business by third parties.

Arrears to the state that are not included in the new out-of-court settlement framework will also be eligible for payment in the 120-month installment plan, with the lowest monthly payment being 50 euros.

Following the commencement of a restructuring plan for a given business, any arrears by the state to the latter will be offset by its verified debts to the state.

The specific law, 4469/2017, was signed by the relevant deputy economy minister and published in the July 14, 2017 edition of the government gazette, after being signed two days earlier.

Inclusion in the out-of-court settlement framework for arrears to the state must be approved by the tax bureau.

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