Topical question M. Katrini to the Prime Minister: Bomb for economic and social stability the private debt of € 260 billion.

The head of the Parliamentary Group of the Movement for Change, Mr. Michalis Katrinis, submitted a topical question to the Prime Minister, Mr. Mitsotakis, about the private debt, which he characterizes as a “bomb” on the foundations of the Greek economy.

Mr. Katrinis, with this parliamentary initiative, seeks the Prime Minister to come to Parliament to give answers to an explosive problem since the private debt exceeds 260 billion euros and poses the greatest threat to the economy and social peace and cohesion.

Michalis Katrinis points out that at the end of 2021, the debt of Greek citizens was:

-111 billion euros in nominal debt to the tax authorities
-41 billion euros the debt to EFKA
-106.7 billion debt representing non-performing loans to banks and servicers
– Unspecified debts to local authorities or from unpaid-regulated electricity bills

The leader of the Parliamentary Group of the Movement for Change characterizes all government interventions as ineffective and failed, noting that:
-Only 43,000 of the 820,000 debtors have been included in the 36-72 installments for debts to the tax authorities for the period of the pandemic.
About 25,000 of the 700,000 debtors have been subject to the arrangement of 36-72 installments for debts to EFKA for the period of the pandemic.
-In the out-of-court debt settlement mechanism that has been operating for 9 months, less than 100 settlements have been made when the red loans exceed numerically 1 million.

“An explosive mix is ​​being formed with the government following the same tactics as before: it chooses the role of spectator.

At the same time, 15,000 auctions by servicers and banks have already been identified by June, and foreclosures and auctions for public debt are about to begin. At the same time, the property acquisition body for vulnerable borrowers will not start before 2023 and is not expected to cover more than 5,000 cases “, stresses Michalis Katrinis.

Given the failure, to date, of all government policies and choices, Mr. Katrinis addresses two questions to the Prime Minister:

1st) If it intends to proceed with a new settlement of 120 installments for debts to the tax authorities and insurance funds, with incentives for those who comply with the regulation, as proportionally provided in Law 4738/2020, simplifying, at the same time, the procedure of the out-of-court debt settlement mechanism .
2nd) If it intends to increase the number of beneficiaries for the protection of the first home, with data and the additional problems created by the wave of price increases and accuracy.
“I wish and hope that the Prime Minister will come to Parliament and give answers to a problem that concerns millions of Greeks and is linked to economic and social stability. “Above all, however, I hope the government realizes that immediate and courageous interventions are needed, to realize that the framework for settling and settling debts has failed and is leading to a social explosion,” said Mr Katrinis.

The text of the question is attached

CURRENT QUESTION

To the Prime Minister Mr. Kyriakos Mitsotakis

SUBJECT: The growing private debt is a bomb in the foundations of the Greek economy and society

The inconspicuous private debt, which exceeds 260 billion euros, is the biggest threat to the economy and Greek society. At the end of 2021, the nominal debt to the tax authorities amounted to 111 billion euros, the total debts to EFKA reached 41 billion euros, the “red” private debt inside and outside banks reached 106.7 billion euros, while it is unspecified the amount of debts from energy bills or debts to local authorities.

At the same time, it is considered certain that the prolonged accuracy will lead to an increase in overdue debts to the tax authorities (5.79 billion unpaid taxes in 2021-2 billion in the last quarter of 2021) and EFKA (2.2 billion debts only in the last quarter of 2021) and creation of new “red” loans (estimated for 4-6 billion euros / year), after the gradual expiration of the “Bridge” programs for households and businesses and the increases in interest rates will lead to larger installments of loans. All government choices so far have failed in practice, as:

Only 43,000 of the 820,000 debtors have been included in the 36-72 installments for debts to the tax authorities for the period of the pandemic

About 25,000 of the 700,000 debtors have been subject to the arrangement of 36-72 installments for debts to EFKA for the period of the pandemic

In the out-of-court debt settlement mechanism that has been operating for 9 months (From 1/6/2021) less than 100 arrangements have been definitively agreed, while only the “red” loans are over 1,000,000 cases!

Given the ineffectiveness of government policies for managing private debt, the identification of about 15,000 auctions by the first half of 2022 (by servicers and banks), but also that foreclosures and auctions for public debt will soon begin – at the same time the real estate acquisition for vulnerable borrowers will start in 2023 and is not expected to cover more than 5,000 cases – it becomes clear that the next period will be particularly difficult for households and businesses that “carry” on their backs accumulated debts from ten years economic crisis.

The Prime Minister is asked

Will it proceed with the settlement of 120 installments for debts to the tax office and insurance funds, with incentives for those who observe the regulation, as is proportionally provided in Law 4738/2020, simplifying, at the same time, the out-of-court procedure?
Will it expand the perimeter of beneficiaries to protect the first home, taking into account the implications of accuracy?

The questioning Member

Michalis Katrinis

Leader of the parliamentary group of the Movement for Change

Member of Parliament for Ilia ”