Greece’s debts to insurance funds are growing at a breakneck pace

The debts of Greek residents to insurance funds are rapidly increasing: according to the 4th quarterly report of the Insurance Debt Collection Center (KEAO), at the end of 2023 they will amount to 47.554 billion euros.

Total amount owed to ΚΕΑΟ at 30 September 2023 was €47,168,970,757, and during the next quarter the debt increased by €385,065,320. The total amount of penalties from the start of KEAO’s work until December 2023 amounted to 11,245,927,857 euros.

During the fourth quarter of 2023 in ΚΕΑΟ 29,831 debtors were included under e-EFKA Employees/T. IKA-ETAM, 11,987 debtors from e-EFKA Non-employees, 75 debtors from t OAEE, 151 debtors from τ ETAA, 338 debtors from τ ΕΤΕΑΕΠ and 73 debtors from organizations not included in e-EFKA.

In total, included in the fourth quarter of 2023 42 455 new debtors whose debt amounted to 21,585,484 euros (principal debts and additional fees). Data processing showed the following:

• concentration of debtors in the lowest debt ranges: 1,711,819 debtors (75.49%) are in debt of up to 15,000 euros each
• 88.89% of debtors (2,015,803) owe up to €30,000 each
• a significant part of the remaining debt concerns 95,057 debtors owed between 50,000 and 100,000 euros (14.05% of the current balance)
• most of the debts concern a few large debtors whose debts exceed 1,000,000 euros (2,641 debtors account for 23.67% of the debt balance)

At the end of December 2023, the total number of active arrangements was 345,743 and the adjusted amount was €4,680,956,492, while completed arrangements stood at 649,237 for debts owed to KEAO amounting to €3,134,091,506.

It should be noted that with a debt of 47 554 036 077 euros, 34.05% (€16,191,174,869) of the total debt was created by debtors who first started creating debt starting in 2010, and 65.95% (€31,362,861,208) was created by debtors who first started create debt in 2009 or earlier.

Uniform debt management procedures are applied to all debtors. From the introduction of the KEAO until December 2023, a total of 2,186,156 individual notices were sent to debtors. In particular, in the fourth quarter of 2023, 29,884 individual notifications were sent.

The total amount of recoveries from the start of the KEAO until December 2023 is EUR 11,245,927,857. The largest share, 60.64% of total collections, came from debts included in the regulatory scheme, while 39.36% was collected from payments not included in the regulatory scheme.

Source link