Rates slashed for old debt arrangements

The government is reducing the interest rates on debt arrangements, which in recent years have increased by 50%.

The interest rates for those with fixed debts for one year will be reduced to 4.34%, while for 24 or 48 installments they will be limited to 5.84%.

In the next few days, as announced on Wednesday by Minister of National Economy and Finance Kostis Hatzidakis, an amendment will be submitted to Parliament which will readjust the interest rates on debt arrangements to the tax authorities, as was done in the Single Social Security Entity (EFKA).

Today the interest rate for a 12-month settlement is 6.68% and 8.18% for a debt settlement with a duration of 24-48 months. It is noted that the interest rate for fixed overdue debt arrangements to the state is derived based on the interest rate of mutual account loans, the average level of which is announced every year by the Bank of Greece.

Nowadays, in the event that someone fails to keep up with the arrangement and joins a new one, then the interest rate reaches 9.68%. These interest rates are higher than those given by banks.