A new regulation for the restructuring of overdue taxes and social security debts in 100 installments has caused a headache to taxpayers who, hearing that the agreement is imminent, have delayed making their payments. As a result, at the start of every month, thousands of businesses and households are in danger of seizure of losing their insurance clearances.

The new measure is an effort to recoup some revenue from those who have overdue taxes by reducing fines and interest rates and increasing installments. Hearing the announcement of the government’s plans, a number of taxpayers have held off making payments leading to the further escalation of unpaid taxes. As a result, unpaid public debt increased by 2 billion euros from the end of June until the end of August rising from 65.8 billion to 67.8 billion euros. Taxpayers with debt prior to 2013 increased by 200,000 in just two months, from 2,256,449 at the end of June to 2,451,909 by the end of August.

Each month, 10,000-12,000 taxpayers end up leaving debts unpaid in the expectation that the new measures will come into effect. Overdue taxes and social security fund payments have also increased by 1.5 billion euros.

Finance Minister Gikas Hardouvelis said that he is aware of the problem and is pushing for the regulation to be enforced, however the government is still discussing the finer points of the bill with its troika of international creditors from the European Commission, European Central Bank and International Monetary Fund (IMF).

Meanwhile, negotiations on nonperforming loans and the reform of the bankruptcy law are ongoing. Development Minister Nikos Dendias estimates that the deal will be completed in the first half of November. In an interview with Mega TV, Dendias said: “Troika asked for some clarifications on the nonperforming loans and I think those will be sent by Monday or Tuesday. They were mainly cross-checking of data. We have also sent the main principles of understanding on bankruptcy law for individuals to the troika so as to agree on the framework and as far as the Greek government is concerned we can be ready even before December.”