Greek government trying to put together a single protective package against several problemswhich simultaneously put pressure on families and businesses: expensive fuel, old debts and harsh practices of collectors.
Most of the measures have already been announced separately, but now they are being combined into a single anti-crisis structure.
Briefly about the main thing
- old debts to tax and insurance funds can be repaid before 120 payments;
- diesel subsidy increases to 15 cents per liter from the state;
- together with the refinery rebate, the total savings on diesel should be approx. 20 cents per liter;
- for collectors, more stringent negotiation deadlines, restrictions on advances and a ban on continuing collection under the current agreement are introduced;
- The government promises to review energy measures approximately every two weeks depending on world prices.
120 payments is no longer a new topic, but now the package is expanding
The main change regarding debts is the increase in the maximum period for settling old debts from 72 to 120 monthly payments.
Athens News has already analyzed in detail who is eligible for this scheme, what debts are included in it and what conditions apply. Cm.: “Up to 120 payments on old debts: Greece makes life difficult for debt collectors”.
It is important not to be confused: the 120 payments relate primarily to debt to tax and insurance funds. Bank loans and debts referred to debt collectors are regulated under different mechanisms.
Before this, there was a scheme for a maximum of 72 payments, which we also discussed in detail in the material “Instalment of debts up to 72 payments: conditions and examples of calculation”.
Diesel is subsidized again
The second part of the package is fuel. Government diesel subsidy increases to 15 cents per literand together with the contribution of oil refining companies, the total discount should reach approximately 20 cents.
The government explains the measure by a sharp rise in world prices for oil and petroleum products and promises to review the level of support every two weeks.
Athens News previously wrote that Greece is preparing an additional aid package for fuel and heating worth up to €200 million: “Dear winter: Greece is preparing up to €200 million more for fuel”.
That is, the current subsidy is not a separate measure, but part of a broader attempt to keep the energy crisis from further hitting prices and family budgets.
Collectors are given new limits
The third part of the package concerns debtors whose loans are already in the hands of collectors.
The government introduces specific deadlines for negotiations, limits the size of the advance payment and strengthens the protection of those who have already concluded an agreement and are faithfully fulfilling it.
In particular, the debt collector will not be able to endlessly delay negotiations or continue collection and auction if the debtor complies with the current restructuring scheme.
We have already discussed all these changes in detail in the material. about 120 payments and new restrictions for collectors.
The government is trying to buy time
Essentially, all three measures solve the same problem from different angles.
High fuel prices are hitting operating costs. Old debts put an already accumulated burden on families and businesses. Collectors are increasing pressure on those who do not have time to service loans.
Therefore, the government is trying to simultaneously reduce the cost of fuel, stretch out the repayment of old debts and limit the most stringent methods of collection.
Officially, the authorities emphasize that the measures should support the population without destroying the country’s fiscal stability. The package will be adjusted depending on the development of the energy crisis and international prices.
Editorial commentary from the Athens News. Most of these measures are already familiar to our readers from individual publications. What is new here is rather something else: the government is gradually collecting them into a single protective package. This is not yet a solution to the debt and energy crisis, but an attempt to reduce pressure in several of the most painful points at once – at gas stations, at the tax office and in relations with collectors.
The official review of the new package has been published ERT.
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