End of time for debt settlement in insurance funds

Dimitris Katsaganis

A countdown of twelve days “runs” until the end of the critical period for two main categories of insurance debts, which can be settled with a large number of installments, namely 72-120 installments.

The key deadline is no later than December 31, 2021 and concerns, firstly, the application for settlement of debts of self-employed persons (formerly insured by OAEE, formerly EBRD), who have requested until the beginning of October 2019 the determination of their debts before 2016 .

Secondly, it concerns the repayment of the debts of the affected employers and professionals from the entrepreneurial pandemic for the period March-July 2020.

120 doses

In more detail, any debtor of the former OAEE (trader, craftsman, etc.) or former EBRD (self-employed engineer, lawyer, doctor) has been informed about the amount of his debts for the period 2002-2006 (or informed by December 31, 2021 ) and does not apply until 31 December 2021 for 120 installments, will not be able to do so from 1 January 2022.

Executives of e-EFKA with whom “K” came in contact stated that at the moment, at least, there is no possibility of a new one, e.g. three-month extension to the application deadline for the 120 installments, although according to other information it should not be ruled out at all.

It is reminded that any debtor who receives information about his debts to the former OAEE before 2016, can request their recalculation based on the Katrougalos law, leading them to a “haircut” of up to 60% and finally, an adjustment of up to 120 installments.

72 doses

As for the debts of the victims (freelancers, employers) of the first five months of the pandemic, they must be paid by the end of this month.

If they are not repaid, they become overdue from January 1, 2022.

However, they can immediately join, along with any other debt from August 2020 to July 2021, in the arrangement of up to 72 installments.

These debts, in particular, can be paid either in up to 36 interest-free installments or in 37 to 72 installments with an interest rate of 2.5%.

In fact, this arrangement is independent in relation to any other arrangement, together with the payment of current contributions. This means, for example, that if one misses the 72-dose setting, one will not miss the 120-dose setting. The reverse is also true, ie if a borrower loses the 120 installment arrangement (because he did not pay two consecutive installments or the current contributions), he will not lose the 72 installment arrangement.

The application for the 72 installments – together with the payment of the 1st installment – must be made by January 31, 2022.

Business executives: New deadline for discharge applications

Until December 31, 2021, executives will be able to apply for debt relief from the companies in which they are employed. This is provided for in a circular issued last week by e-EFKA, indicating, for the first time, indicative cases of relevant exemption.

It is recalled that in order for a natural person to become jointly and severally liable for the payment of insurance debts of a legal entity, the following conditions must be met cumulatively:

– The natural person to participate in the administration of the legal entity with one of the provided representative / managerial qualities (eg chairman, managing director, liquidator, etc.).

– The natural person held this capacity either at the expiration date of the due insurance contributions or at the expiration date of the adjustment payment period, ie at the date of loss of the regulation by which the due insurance policies were settled in installments contributions.

– The natural person was responsible for the non-payment of the due insurance contributions of the legal entity.

With regard to the indicative cases of lack of fault, the following are defined as such:

Inability to perform duties due to serious illness or hospitalization.

Participation in special liquidation procedures as a liquidator.

Exercise of special duties of foreigners in terms of compliance with insurance obligations.

Discharge by court order.

– Resignation / non-acceptance of appointment.

– Legal entities of non-profit character with main financial resource state financing.

Taking over the administration of a body of the narrow or wider public sector by order of a prosecuting, auditing or other independent authority.

– Legal representative of a foreign legal entity without establishment in Greece.

– Person without involvement in the administration / management of a legal entity.

– A person without legal capacity.

– Recognition of the lack of fault with a decision of the Tax Administration.