Gov’t offers favorable settlements for debtors

An Economy Ministry bill published on Tuesday concerning out-of-court debt settlements provides for the payment of dues according to the corporation’s or entrepreneur’s ability to do so, with the writeoff of the rest of the arrears at the end of an agreed period.

The proposal sees the repayment of debts being based on the estimated revenues and expenditure of each borrower for the following three years at least. An essential condition is that the restructuring of arrears should not leave the lender in a worse position than if the borrower’s assets had been liquidated.

The publication of the bill does not necessarily mean that it is the final text, as a number of issues remain on the negotiating table with the country’s creditors. These include the minimum amount of debts to enter the process: The ministry proposes 20,000 euros while the creditors would prefer 50,000 euros.

The aim is to have the proposal form the basis of negotiations upon the creditors’ return to Athens next week.