Deputy Finance Minister Nadia Valavani outlined the numbers of people affected by their debts. She said taxpayers owes 9 bln euros worth of debts to the state, of which 5,000 people owe the largest amount of this. She made a number of proposals concerning the gathering of debt including an end to the possibility of arrest for 3.64 million people who owe money to the state.

Two stages of the government’s program will immediately go into affect

1) Those who have already entered the 100 installments settlement  – 195,000 people and businesses for an amount worth 2.1 bln euros –  can decide if they want to remain in this program or join another regulation being presented by the government.

2) Extra-judiciary committees will be created to solve problems that cannot be solved electronically.

Debts will all be gathered at one tax statement and the total amount of money will be calculated. People can choose to pay their debt in part or in full (with a 200-euro minimum). Fines and interest rates will be lifted for those who pay the amount owed in one lump sum. A new 100 installment settlement will be created and debtors can choose whether they want to follow the previous program or the new one.

“Bring whatever you can and you can get a 50% discount, whether for part pay-off or full,” said Valavani, adding that a 50% discount will be given for lump sum payments until 2013.

Debts up to 5,000 euros don’t have interest, whereas 5,000 euros and over get a 3% interest rates. Debtors are given a period of grace for a delay of three installments with a 0.25% fee.  Whoever enters the regulation needs to have lodged tax returns and has a three-month period of grace or else they may lose the regulation.