Thousands of major debtors to the State and e-EFKA have until the end of June to settle their debts and avoid having their details published on the list of debtors with debts exceeding 150,000 euros. Based on the decision that has already been issued, the joint publication of updated data on overdue debts to the State and e-EFKA is scheduled for June 30, 2026.
Prior to that, on June 9, electronic notifications will be sent to debtors who meet the disclosure criteria, urging them to pay off or settle their debts by June 24.
The list includes both individuals and legal entities with overdue debts exceeding 150,000 euros that have remained unpaid for more than one year. Excluded are those who have entered into an active repayment plan and are complying with its terms, those who have secured a suspension of collection, as well as specific categories of debtors provided for by law.
Specifically, the following cases are exempt from disclosure:
- debts that have been placed under a settlement arrangement and the terms of which are being met,
- debts for which collection has been suspended pursuant to a temporary order, a court decision, an act of an administrative body, or by law,
- debts that have been classified as uncollectible,
- debts of deceased persons or minors, and
- debts of legal entities within the narrow or broader public sector.
However, the situation may change before the final publication of the data, as a new regulation allowing for the payment of debts in up to 72 installments is expected to be passed in June, which will apply to confirmed overdue debts to the tax authorities that have become due by December 31, 2023.
The imminent implementation of the new arrangement is causing concern among economic policymakers, as many debtors who are on the verge of having their details made public will be able to join the new repayment plan. For this reason, alternative scenarios are being considered.
The first scenario calls for postponing or suspending the disclosure for as long as the application platform for the 72-installment plan remains open, so that debtors have the opportunity to take advantage of the new arrangement. The second scenario calls for the disclosure to proceed as scheduled on June 30, but for the process of removing or deleting the disclosed information to be applied immediately for those who subsequently join the arrangement and comply with its terms.
Moreover, the relevant decision explicitly provides that, following disclosure, it is possible to correct, remove, or delete information when the debtor settles their debts or ceases to meet the disclosure criteria. Examples of cases where the conditions for correction, removal, or deletion of the published information are met include:
- the inclusion of debts in a settlement arrangement and compliance with its terms,
- payment of the required amount to reduce the principal debt by at least 150,000 euros,
- payment of the required amount to reduce the payment arrears to at least the current twelve-month period,
- the write-off of the debt for any reason, etc.
It should be noted that the new debt settlement scheme, which is expected to be passed by Parliament in June, will allow for the repayment of overdue debts in up to 72 monthly installments. However, please note: Debts owed to the EFKA or the Tax Administration that have become due by December 31, 2023, will be eligible for the new arrangement.
Existing overdue debts incurred after December 31, 2023, must be settled separately through the standard 24-installment plan. If the debtor fails to pay the installments for these new debts, then the entire debt included in both the 72-installment and the 24-installment payment plans becomes immediately due and payable, along with all legal surcharges and collection measures.
Basic requirements for inclusion in the 72-installment plan will also include the submission of all income tax returns for the past five years, the absence of a final conviction for tax evasion or smuggling, and the settlement of any other overdue debts not covered by the plan.
The minimum installment amount will be 30 euros, and a fixed interest rate of 5.84% will apply. The arrangement will be terminated in the event of failure to pay two consecutive installments or the creation of new overdue debts not covered by the arrangement.