At 42.8 billion euros the debts to the Funds

A new increase in debts to the funds is recorded in the report of the Insurance Debt Collection Center for the first quarter of 2022.

Specifically, they amounted to 42.8 billion. Euro in March 2022 against 41 billion. euros in December 2021, confirming information from Capital.gr.

Information from Capital.gr states that this increase (1.3 billion euros) is due to the transfer of debts of employers for the most “hard” period of the pandemic, ie from the beginning of 2020 until the end of 2021.

At the end of March 2022, the total amount of 31,645,601,719 euros in debts that have been included in the K.E.A.O., amounted to 42,839,959,881 euros (current balance). The current balance changes daily. Changes in total debt are as follows:

– New memberships of debtors, who are joining the K.E.A.O. for the first time. with all their debts for all the years.

-Transfer of new debts and additional fees for the debtors who are already included in the K.E.A.O.

– Payment of amounts by debtors (adjustment installments, against payment, repayment)

– Write-offs, reductions, debt clearings and discounts of surcharges due to regulations.

The total debt to K.E.A.O. on 31/12/2021 was 41,020,670,581 euros and within the next quarter the debt increased by 1,819,289,300 euros.

The change concerned an increase of 1,359,714,389 euros in principal debts and by 459,574,911 euros in additional fees.

Business plan

In addition to the report of KEAO, the new business plan for 2022 was published. Confirming a publication of Capital.gr, it provides:

– Restart – after a long period of suspension due to pandemic management measures – the process of targeted enforcement measures to enhance debt collection and seek debtor compliance. The goal remains the timely (within the quarter from the inclusion of the debtors in the K.E.A.O.) compulsory measures taken by the K.E.A.O., based on the export of detailed lists of debtors against whom they must immediately to take compulsory measures (target files for debtors who are included in the K.E.A.O. for the first time).

– In addition to the constant targeting for taking mandatory measures within the quarter from the inclusion of debtors in the K.E.A.O., the systematic export of files to monitor the progress of measures (follow-up) and planning will begin again. new actions.

-Adaptation of the operational procedures for the support of the impending transfer from the General Directorate of Contributions e-EFKA to K.E.A.O. the responsibility for issuing the Certificate of Insurance Awareness and the Certificate of Debt for the transfer of real estate, as well as the imminent change of the legal framework for the issuance of such certificates taking into account only those certified in the K.E.A.O. overdue debts.

– Intensification of the central monitoring of the procedure for the collection of inert auctions by the regional services of K.E.A.O. . Creation of a protocol of enforcement actions against debtors under suspension of submission of APD via internet and redesign of the central monitoring of enforcement actions against these debtors.

-Operation at business level of the imminent abolition within 2023 of the payment code “Debt Identity Card” using which the Credit Institutions return the seized amounts as well as the necessary replacement with a new form of payment code RF according to the standard RI18.

– Adaptation of business procedures in the business area of ​​debt limitation in order to comply with the K.E.A.O. with the no. ΣτΕ Ολ 1833/2021 Decision of the Council of State.

In any effective debt management mechanism, it is important that the forced collection is based on the characteristics of the debt by establishing criteria for characterization and categorization of debts. In the compulsory measures taken by the K.E.A.O. there is stratification depending on the age and the amount of the debt. Thus, priority is given to the most recent debts, which have theoretically higher receivables. At the same time, more intensive efforts for forced collection are required for debtors with high debts (eg over 200,000 euros). For this purpose, in the structure of the Regional Services based on the new Organization, a separate section was provided for the management of large debtors, so that there is continuous and close monitoring of these debtors and the measures taken.

In addition, based on the data available in the information system, the debtor’s profile is evaluated. Elements that are taken into account are the credibility and the general behavior of the debtor in relation to the fulfillment of his current and overdue obligations. For example, the payment of current contributions and the parallel payment each month of a reasonable amount against the debt is taken into account in favor of the debtor. On the contrary, the constant inclusion in arrangements and their loss weakens the debtor’s credibility profile. An important action is the analysis of the results of the categorization of debts according to their viability (Triage). The results and conclusions of the categorization will be used, among other things, to identify the debtors who should be put more pressure, since the analysis seems to be able to meet their debt (ie they have sustainable debts and high repayment capacity).