EFKA “forgets” the old debts, due to inability to collect!


EFKA “forgets” the old debts of the debtors and the collection mechanism focuses on the “fresh” debts that are considered most likely to be collected, as it appears from yesterday’s statements of the Minister of Labor Kostis Hatzidakis.

Asked about it, he answered “many of them are old and their collectibility is questionable. It is an issue that has occupied Greece for decades, while there is a similar issue in the Ministry of Finance.

In addition to the arrangements for the convenience of the citizens, we focus on the ones that are more collectible in order to have better balance sheets and better management in the insurance funds “.

These are debts of tens of billions of euros, which will remain uncollected as well these are debts of decades or come from big you owewhether it is “Feces” of tricks who do not pay and have taken care to secure against possible seizures of deposits and other assets.

However, the “Confession” of Mr. Hatzidakis, for the impossibility of their collection although, it has a dose very realistically, nevertheless it gives a negative signal to the market and especially to the consistent insured.

Least receivables from 39 billion euros

At the end of last September, the total debts to EFKA claimed by KEAO, amounted to 38.8 billion euros.

However, the analysis of KEAO reveals the significant problems of collection of most of the debts. Specifically:

  • A group of 2,149 large debtors have debts of more than 1 million euros each, who owe a total of 9.4 billion euros or 24.2% of the total debts to EFKA. Clearly, their collection is impossible, while the specific group, avoided even joining the regulation of 120 installments, which means it has no intention of payment.
  • 74.3% of total debts or amount 28.8 billion euros was created by debtors who started creating debts for the first time in 2009 or earlier.
  • Only 25.73% of total debts or amount 9.98 billion euros, was created by debtors who started creating debts for the first time since 2010.
  • Which are collected and which are not

    The Insurance Debt Collection Center admits that many of the debts show very low or zero receivables and for this reason separates them into receivables and not.

    The category of low collection debts includes, for example, debts for the collection of which Repeated enforcement measures have been taken to no avail, debts of persons who have died and the heirs renounced the inheritance, debts of companies that have gone bankrupt or are inactive, etc.

    It also states that the K.E.A.O. has implemented the procedure for segregation of uncollectible debts, which includes many stages and ends up being registered in the special book of non-recoverable for those cases deemed to meet the requirements of the law. Particularly:

  • The Directorate of Risk Analysis and Assessment, based on specific criteria that sets, identifies and separates debts with a low, perhaps zero degree of collection.
  • Cases of debtors with low or zero collection rate can also be identified by the competent Regional Services.
  • The procedure presupposes a thorough control by the competent regional services to identify all sources of repayment of the debt and exhaustion of any collection instrument to the detriment of the debtor, so that the competent authorities can propose and safely suggest the classification of a debt as uncollectible.
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