Top-level meeting on settling of debts to state and insurance funds

Prime Minister Antonis Samaras and five ministers met on Tuesday in an effort to find a balanced way to settle arrears in 100 installments

Prime Minister Antonis Samaras headed a meeting of top government officials on finding a way to settle arrears towards the state and insurance funds on Tuesday. The meeting was held following objections by the troika of Greece’s international creditors comprised of the European Commission, European Central Bank and International Monetary Fund. Present at the meeting were Finance Minister Gikas Hardouvelis, Development and Competition Minister Nikos Dendias, Labour Minister Giannis Vroutsis and Justice Minister Haralambos Athanasiou.

Sources state that the troika had asked for stricter conditions pertaining to the new legislation that would allow for the settlement of debts in up to 100 payment installments. Greece’s creditors are concerned that debtors who successfully meet their debt payments may end up entering the new regulation for settling bad loans.

Mr. Samaras is particularly irritated by Mr. Hardouvelis, Mr. Dendias and Mr. Vroutsis’ statements that they are ready to deal with nonperforming loans in their sectors however are unable to align their views and present a “balanced” solution for debt as required by the troika. Specifically, the troika wants all legislation on settling arrears to have similar conditions so that none appear more advantageous and so that those who have debts towards banks and the state will just choose one method of settlement.

The new regulation is already 12 days overdue while retroactive debt has increased by 2.5 billion euros over the last two months. In fact the problem with outstanding debts is so great that obligations towards insurance funds and other state bodies has now topped 70 billion euros.