The Extrajudicial Debt Settlement Mechanism is an electronic procedure, without recourse to the courts, through which debts to institutional creditors can be settled, i.e. financial institutions (i.e. banks and loan managers), the State (i.e. AADE) and Social Security Institutions (i.e. . EFKA / KEAO), as well as debts in favor of third parties that are collected by the tax administration (e.g. debts to municipalities that are certified and collected through AADE).
Through the out-of-court mechanism, the possibility of arranging loans with a guarantee of the Greek State is also provided.
The regulation may provide for:
A. partial cancellation of debts, as follows:
To the State:
- up to 75% on the principal debt,
- up to 85% on the additions of overdue debts to AADE and e-EFKA and
- up to 95% on AADE fines
To banks and loan managers:
- to 80% on the principal debt, as well as
- up to 100% on interest.
In order to obtain a partial debt write-off, all the rules and conditions must be met, as determined by the European institutional framework, the most important of which are:
- to have real financial weakness, both the debtor and his co-debtors and guarantors
- the commercial value of the property of the debtor, his co-debtors and guarantors is less than the amount of the debt.
B. Following the eventual partial cancellation of debt above
The remaining debt can be arranged in a long-term repayment plan, as follows:
- overdue debts to the State and Social Security Agencies may be settled in up to two hundred and forty (240) installments
- non-performing loans to banks and loan managers can be adjusted up to:
a) 420 installments for debts of natural persons to financial institutions that are fully or partially covered by special privileges,
b) 240 installments for the debts of natural persons to financial institutions that are not covered by special privileges and for the debts of legal persons to financial institutions that are fully or partially covered by special privileges,
c) 180 installments for debts of legal entities to financial institutions that are not covered by special privileges
C. The Law also provides support provisions for vulnerable households that regulate their debts and thus the state provides a State subsidy to loans 1her residence for 5 years.
Call us to inform you about the prospects of joining on the phone 231 309 7575.