Haggling over the final number of installments

The number of installments and ensuring the solvency of the debtors remain unresolved issues in the negotiations of the Labor ministry leadership and troika. The technical teams sent an email to Labour minister G. Vroutsis Saturday evening in which they requested a meeting on Sunday. The Labor ministry claims they are close to a final agreement regarding the debts towards Funds, following the second proposal submitted by the Greek side, more compatible with the current situation in other European countries.

 

The leadership of the ministry tried to convince lenders to take into account the recessionary environment in which the Greek market operates and the acute liquidity problem of Greek enterprises.

 

The representatives of Greece’s lenders proposed a standard setting for the repayment of debts to 18 installments and an adjustment of last opportunity to 36 installments. In the second proposal, the Greek side lowered the number of installments from 66 it initially asked for, to 48.

 

Troika also insists on the requirement of collateral from the borrowers (proof of solvency) that they will be able to repay their debt. For debts up to 50,000 euros there should be a detailed financial report, for debts from 50,000 to 100,000 euros there should be a certificate of viability (or they will be followed by enforced collection measures) and for debts of more than 100,000 euros the debtors will be required to present a solvency certificate to be issued by bank, auditors or auditing firms.

 

The initial proposal of the Labor ministry did not find a warm reception since troika officials do not want the debt to be repaid in unlimited installments. On the contrary, they believe that debts accumulated for over 8 months should not be taken into account, as they are highly unsafe.

 

Troika also had difficulty accepting the proposal to reward consistent payers with a reduction in surcharges up to 10%. It has also clarified that the setting will not benefit bankrupt companies and those that have repeatedly been included into settings but in the process their debts were not adjusted.