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The new business plan of the Funds for debt collection

To Dimitris Katsaganis

Restart in all their actions to increase the collection of insurance debts, which have now exceeded 41 billion euros, the Funds are attempting this year.

“Weapon” in this direction will be the new business plan of the Insurance Debt Collection Center (KEAO), which was exclusively presented by Capital.gr.

Priority, according to this plan, for taking compulsory measures is given to most recent debts, which have theoretically higher receivables. At the same time, more intensive efforts for forced collection are required for the debtors In high debts, e.g. over 200,000 euros.

There are two main axes of action of KEAO for 2022, according to what is foreseen in its operational plan:

Axis 1: Intensification of Overdue Debt Collection Mechanisms – revenue growth

The planned actions are the following:

Settings management

The constant aim is to include as many debts as possible in a regulatory regime and for the debtors to comply with the regulations.

A key point of interest for 2022 will be the implementation of the new out-of-court Debt Settlement Mechanism of Law 4738/2020 (“Debt settlement and provision of second chance and other provisions”).

With regard to the continuous monitoring and control of the regulations, the KEAO plans, inter alia, the following:

-Production of monthly reports on the losses of all settings.

-Immediate notification of debtors by e-mail when there is a risk of loss of settlement, either due to new debts or due to failures on the part of the debtor to comply with the terms of the settlement.

– Carrying out a statistical control of maintaining the arrangements of the out-of-court debt settlement mechanism (Law 4469/17 and Law 4738/20) for debtors who signed a settlement.

-Continuation of control of maintenance of special regulations based on ratifying decisions on reorganization agreements and the provisions of no. 62a of KEPSE, as well as regulations of over-indebted natural persons.

-Implementation of a special type of regulations in accordance with law 3869/10 for over-indebted households, the pre-bankruptcy consolidation process of law 3588/2007, as well as article 62A of KEDE.

Enforcement of Compulsory Collection Trees

In the field of enforcement, the actions planned, among others, for 2022 are:

-Restart after the long period of suspension due to the measures for the management of the pandemic the process of taking mandatory measures to strengthen the collection and the pursuit of the debtors’ compliance.

-Restart the systematic export of files to monitor the evolution of the Measures (follow-up) and the planning of new actions.

In the compulsory measures taken by the KEAO there is stratification depending on the age and the amount of the debt. Thus, priority for receiving Credits is given to the most recent debts, which have theoretically higher collection. At the same time, more intensive efforts for forced collection are required for debtors with high debts (eg over 200,000 euros). Continuous and close monitoring of these debtors and the Receipts received.

In addition, based on the data available in the information system, the profile of the debtor 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.

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, inter alia, to identify the debtors who should be most pressured, as the analysis seems to be able to meet their debt.

Axis 2: Debt portfolio management and analysis

The actions required for the effective management of the debt portfolio include, in accordance with the KEAO, the following:

Keeping an updated Debtors Register

This action concerns the continuous updating of the Unified Register of Debtors and the updating of the data included in it, in order to achieve the required validity and completeness of the data and to be possible, safe and correct their further processing, when required. The sending of Individual Notices, the receipt of compulsory measures, the segregation of low collection debts and the identification of

actually responsible in cases of organized contribution evasion presuppose access to updated and complete Registry data. In this context, the KEAO carries out thorough checks for the correction of errors in the Register data, proceeding to intersections with data maintained in other services.

Regarding the debtors-employers, a procedure of control of their Register has been defined based on criteria (eg liability gaps, incomplete data of the Register of managers), so that within a reasonable period of time from their membership in KEAO, files are produced for which corrections are required, which are processed. Regarding the debtors – natural persons, during their inclusion in the KEAO, identification is carried out, if they have VAT, based on the data kept in the GSIS Register). Identification tests are produced and the required corrections are made immediately.

Data mining and debt portfolio analysis

The central monitoring of debtors is ensured in KEAO. The assessment of debts and debtors is an important factor for the efficient operation of KEAO, with the main actions consisting, among others:

-In the creation of the debtor’s profile, which takes into account the characteristics of the debtor (legal form, activity), but also his general behavior in relation to the fulfillment of his obligations (consequence in the payment of current contributions, regular payment of reasonable amounts against etc.).

-In the determination of the theoretical collection of the debt, in order to identify:

a) The debtors who should be given priority when taking compulsory measures, because their debt is of high collection.

b) Debts that are of low collection and the pursuit of their collection is not economically profitable, ie it entails unnecessary waste of material and human resources.

-In the categorization of Large Debtors according to viability (triage), in cooperation with the tax administration, with the aim of analyzing the debt portfolio of Large Debtors that have been included in the Unified Register of Debtors and Debtors προσ the differentiated treatment of debtors based on the characteristics of the individual categories.

Separation of debts of very low collection

The category of low collection debts includes debts for the collection of which repeated compulsory collection measures have been taken without result, debts of persons who have died and the heirs have renounced the inheritance, debts of companies that are in debt, etc.

Source: Capital

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