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Sources: Out-of-court settlement process for businesses expected to be extended

Extension of an out-of-court settlement framework for arrears owed by businesses, by six months or even a year, is considered a highly likely prospect, according to well-informed sources that spoke with “N” over the recent period.

The current bill that delineates the out-of-court settlement framework is set to expire on the last day of 2018.

Nevertheless, any extension is not expected to cover arrears recorded in 2018, a development that would act as a counter-incentive for businesses to pay incurred debts in the last two months of the year.

Despite improvements in the framework, the process continues to suffer from weaknesses, the most significant of which is that Greek banks, especially regarding loans backed up by collateral, avoid offering noteworthy “haircuts” to businesses seeking the settlement of their arrears through the process.