The finance ministry will table a draft bill in Parliament reportedly outlining the process for out-of-court settlements of arrears to the state and private sector creditors by businesses and self-employed professionals.
The finance ministry will table a draft bill in Parliament reportedly outlining the process for out-of-court settlements of arrears to the state and private sector creditors by businesses and self-employed professionals.
The draft legislation was approved on Wednesday by inner cabinet council on economic policy, which convened under the chairmanship of government Deputy PM Yannis Dragasakis.
Under terms of the draft legislation, the state sector, social security funds and banks will jointly participate in a “haircut” of “viable enterprises, which are otherwise over-extended in terms of their borrowing.
All types of business entities will be eligible for the out-of-court settlement, including personal businesses and self-employed professionals.
Proposed resolutions include multi-year grace periods and an extension of payment terms, along with possible “haircuts” of debts, as well as other types of debt restructuring.