YPOIK: Launch of the ‘Early Warning Mechanism’ platform

The Ministry of Finance announced the activation of the new digital platform of the “Early Warning Mechanism”, within the framework of the Law on debt settlement and the provision of a second opportunity (Law 4738/2020).

The Mechanism is implemented for the first time in our country and is applied in harmonization with the European Directive 1023/2019, the ministry states in a relevant announcement and adds: Early warning is an innovative process, at a pan-European level, which aims to identify circumstances that may lead to insolvency. And this in order to prevent over-indebtedness of households and businesses.

The early warning process involves three basic steps:

1st The interested debtor submits an application to the Early Warning Mechanism, through the digital platform of the Special Secretariat for Private Debt Management (ESDP), of the Ministry of Finance (http://www.keyd.gov.gr/ the http://ofeiles.gov.gr). Through it, it provides its consent to the removal of privacy, with the aim of searching, accessing, collecting, processing and cross-referencing data concerning it.

2nd The platform processes financial data, based on special indicators, such as short-term debt coverage. Next, the debtor is classified in one of the three levels of insolvency risk (low – medium – high).

3rd In case the debtor has been classified as moderate or high level of risk and if he wishes, then he requests, through the platform, the scheduling of the first meeting in order to receive free information services. In this context, he fills in a special questionnaire and attaches any data that are not digitally available. These data are studied by expert experts, who then provide information and advice to the debtor.

Particularly:
Households can contact the 52 Centers – Borrower Information and Support Offices (K.E.Y.D. – G.E.Y.D., tel. For appointment 213.212.5730), where the employee contacts them within 10 days, to schedule the first meeting (live or online), with the aim of:
a) To be informed about the legal framework and the general terms of the loan agreements and the debt settlement agreements.

b) Understand proposed terms of debt settlement loan agreements.

c) To be informed about the preparation of a family budget, in particular in order to comply with debt repayment arrangements.

d) To be informed about the financial management of their household.

Freelancers and businesses can contact the Professional Bodies, ie the Chambers of Commerce, the Professional Associations and the Institutes of Institutions, where the competent representative, appointed by the body, contacts them within 10 days, to schedule the first meeting (live or online), with the aim of:
a) To be informed about the legal framework and the general terms of the loan agreements and the debt settlement agreements.

b) To receive consulting business support (indicatively, leadership advice, promotion of products or services, possibility to find new markets and customers or suppliers, exploration of the possibility for synergy / cooperation / merger with other companies, suggestion for possibility of financing from national or European programs subsidy / support etc.).

c) To receive consulting business guidance (indicatively, presentation of alternative production models, according to market trends and technological developments, indication of non-compliance with accounting principles with consistency and accuracy, etc.).

d) To support the strengthening of business thinking and culture (indicatively, change of mentality through the avoidance of over-indebtedness, through realistic planning and adoption of real goals, as well as training of the entrepreneur and / or employees of the company, etc.).

e) To receive animation (indicatively, referral to psychological help in order to allow for reflection and dialogue).

It is pointed out that the Professional Bodies can establish a Register of Voluntary Consulting Providers, where scientists of various specialties can be registered, such as economists, accountants, legal, certified auditors, who voluntarily provide information and support services to debtors.

The platform was designed by EGDIX, in collaboration with the General Secretariat for Digital Governance and Process Simplification and the General Secretariat for Information Systems of Public Administration of the Ministry of Digital Government, from which it was developed, supported and hosted.

The Ministry of Finance is constantly taking measures to support households and businesses and will continue, with method, responsibility and social justice, to plan and implement actions towards the holistic and effective addressing of the major issue of private debt.