Proposals by Kyriakos Mitsotakis on NPLs and the ENFIA tax

A preview of New Democracy’s program

The theme of the 4th preliminary conference of New Democracy, which will be held in Heraklion, Crete has already been decided: “Business and restarting the economy“. The leader of New Democracy wanting society to truly understand its commitment to resolving everyday problems puts forward a “hot topic” for banks, businesses and the lenders of the country.

Non-performing loans, or as they are known “red loans”, and the out-of-court settlement. Mr.Mitsotakis, instead of the lengthy process of the out-of-court settlement and the endless documentation that the companies in question are required to bring together, offers a counter-proposal based on an agreement between the bank and the debtor, which will also settle debts towards the State and the Social Security Fund. As party members explain, this can be done in two simple steps.

At first, banks will be obligated to propose the restructuring of the debts, according to their own predictions.Once an agreement has been reached between the debtor and the banks, the rate of write-off can automatically and proportionally take all the surcharges and fines that relate to debts towards the State and the Insurance Funds.

The proposal of New Democracy, as presented by Mr.Mitsotakis, concerns businesses that are in operation, submit tax statements and balance sheets as well as freelancers, while the regulation excludes any fines that may have been imposed on debtors for tax evasion or fraud against the State or a Social Security Fund.

A second chance for businesses

With this proposal, New Democracy offers as it characterizes it – the only feasible and realistic solution to the economic asphyxia, which is strangulating thousands of self-employed, SMEs in the country, due to the time-consuming and, practically, already failed process which the government has legislated.

New Democracy is strongly criticizing the government with regards to the effectiveness of the existing plan for the out-of-court settlement. Specifically, New Democracy claims that, while the out-of-court settlement process has been implemented for the past three months, only 180 applications have been submitted. New Democracy specifically argues that: “The Government has the proverbial naivety to express its satisfaction with the rate of submission of such application, when the problem concerns more than 400.000 heavily indebted businesses, which the competent Ministers are strangulating with unnecessary bureaucratic procedures.”

The court, one could say, is primed, as the pre-conference will be exclusively dedicated to the real economy, which is the ace up in New Democracy’s sleeve against SYRIZA.

Mr.Mitsotakis, in Heraklion, Crete, will highlight the ways in which the over-achievement of the budget surplus be used to reduce the ENFIA tax in a fair and planned manner, provide financial support to the long-term unemployed, and also repay part of the public debt owed to individuals and private businesses.