The energy crisis is leading to a mass exit from the arrangements in the Funds

By Dimitris Katsaganis

It continues wave of flight from insurance debt arrangements under the weight of the consequences of the energy crisis.

The same time, the volume of overdue debts, which have been registered with the Insurance Debt Collection Center, is increasing (KEAO).

However, the Prime Minister himself, Mr Kyriakos Mitsotakis, from the floor of the Parliament, has announced since the middle of this month that “in the coming weeks those who owe EFKA will join the more favorable regime of more installments of the Ministry of Finance and the limitation procedure is streamlined.”

According to his secure information Capital.gr by competent officials, overdue debts to the e-EFKA in June 2022 reached a new record high, as they amounted to 43.4 billion euros against 42.8 billion euros in March 2022. In other words, they increased within three months by 600 million euros. This increase, however, is due more in increments and less in an increase in principal debts.

Regarding the course of active regulations, their dramatic reduction continued for the second half of the year.

Specifically, according to his information Capital.gr the active arrangements of the 120 installments (which collects the largest part of regulated debts) fell to 212,572 in June 2022 compared to 275,653 in March 2022, while in December 2021 they rose to 389,332. In other words, within the first half of 2022, the active arrangements of 120 installments were reduced by 176,760 or 45%, with a very small part of them being complete.

Between the first and second quarters there was a decrease of 113,679 in active arrangements (-29%) of the 120 installments. This means that in the last quarter these arrangements were reduced by approximately ¼.

Thus, as Fund executives comment on Capital.gr, this year’s regulatory and indirect revenue collection target and the e-EFKA budget targets are de facto in doubt, at the same time as the demands for spending are increasing due to the commitment to zero out the overdue pending pensions, the imminent unfreezing of increases and the abolition of the solidarity levy.

It is recalled that during the pandemic period, despite the harsh restrictive measures (lock down, etc.), there was a very small reduction in active regulations.

The active arrangements of the 72 installments fell in June 2022 to 43,901, according to information from Capital.gr, compared to 54,788 that had reached in March 2022. It is noted that the arrangement of the 72 installments only concerned entrepreneurs affected by the pandemic and debts them during the period February 2021- June 2022.

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