They got sick with covid the revenues of the Funds from regulations

They got sick with covid the revenues of the Funds from regulations

By Dimitris Katsaganis

Three are the most important characteristics of the “map” of debt settlement to the funds brought by the pandemic.

According to his data Insurance Debt Collection Center (KEAO), the first point is the “resilience” of active regulation, despite the great recession of 2020, but also the subsequent difficulties -especially during the first half of 2021- in the field of economy.

The second point was the reduction of non-regulatory income, ie from foreclosures and payments “against” debt and the third that The most significant deviation from the target of regulatory revenues in total occurred in 2021 (when the Greek economy recovered) and not in 2020 (so there was a big contraction due to the hard lock down especially in spring but also in the fall of the same year).

More detail:

As can be seen from the following chart, with the exception of a small decline in the first half of 2021, the active regulations (ie those that debtors continued to adhere to) recorded a steady course throughout the pandemic.

The “settlement” in this process was the settlement of 120 installments (law 4611/2019). in fact, more debtors were attracted.

Number of active settings per type of setting

Despite the steady-growing course of active regulation, revenues declined. As can be seen from the following table, the total revenue of KEAO in 2021 fell to 992 million euros compared to 1.126 billion euros in 2020 and 1.471 billion euros in 2019, when there was a historic record. This decrease is mainly due to the reduction of non-settlement revenues (foreclosures, payments “against” debt). , ie in 2019 -2021 they fell by almost 15%.

In contrast, non-regulated revenues between 2019-2020 fell by 48% and between 2020-2021 by 18%. Overall, ie in 2019-2021 they fell by almost 58%.

Receipts per year

The huge continuation of the reduction of non-regulatory revenues in 2021 and the greater reduction of regulatory revenues in 2021 compared to 2020 – despite the recovery of the economy in 2021 – led to a huge deviation from the recovery target in 2021. Specifically, instead for 1.594 billion euros last year, 992 million euros were collected.

In other words, only 62% of the revenue target was achieved. The “performance” was better in 2020, although there was a deep and sharp decline, in particular, last year it achieved 82% of the revenue target, as the funds entered 1.126 billion euros against a target of 1.378 billion euros.

Source: Capital