Greece’s creditors are calling for the government to halt the plans for debt repayments to be made in 100 installments as they believe that it would serve to inflate debts. Alternate Finance Minister Tryfon Alexiadis told Private SKAI TV that there would be no new regulations for tax repayments in doses and called on debtors to make use of the existing framework of 12 or 24 repayments.
In an effort to amp pressure for debt repayments, the legal framework for those who owe money was made more rigorous with those who are already on the scheme forced to pay debts incurred after July 1 no later than 15 days after the deadline or risk being kicked out of the 100-installment plan and face other penalties. New debts will need to be paid on time for those interested in making use of the 100-installment scheme after January 1, 2018.
Creditors fear that the existing scheme would only increase overdue debt. The Center for the Collection of Social Security Debt (KEAO) shows that most people in the installments scheme are unable to keep up with their debt repayments with a total of 147,308 signed up for the program but only 50,249 still paying, and a mere 8,842 debtors managing to successfully complete payments. Thirty-six thousand and fifty three borrowers out of 75,451 dropped out of the scheme from April to June 2016.
The government has also introduced for exceptional cases of debt to prevent overdue debts as well seizure of bank accounts and real estate auctions for 55 percent.
Figures from the Ministry of Finance show that debts to the Greek state are increasing by 1 billion euros per month with new taxpayer debt at 6.8 billion euros in the first semester of 2016. Data from the KEAO shows that overdue debt is at 16.6 billion euros.