Greece's New 72-Instalment Debt Plan: Bank Account Seizure Relief and a Lower Out-of-Court Threshold

13 hours ago
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Greece's Ministry of National Economy and Finance is preparing to submit a new bill to Parliament that addresses one of the most persistent pain points for businesses and individuals: accumulated tax and social security debt. The legislation introduces three targeted measures that, taken together, represent the most significant debt relief package in several years.

The Three Key Provisions

Deputy Finance Minister Giorgos Kotsiris outlined the measures in a televised interview, framing them as part of a broader strategy to boost disposable income and restore payment culture. The three provisions are:

72-instalment repayment plan: available for debts to the state and e-EFKA that existed as of 31 December 2023.
Bank account seizure release: upon payment of 25% of the outstanding amount and arrangement of the remainder in instalments.
Out-of-court settlement threshold halved: from €10,000 to €5,000 — doubling the number of eligible debtors.

Why the Bank Account Seizure Provision Matters Most

For many small businesses and self-employed professionals, a frozen bank account is not just a financial inconvenience — it is an operational crisis. The inability to process payments, pay suppliers, or meet payroll can quickly spiral into insolvency. The new provision allows businesses to unlock their accounts by paying just 25% of the outstanding debt upfront and settling the rest in instalments.

This is a pragmatic recognition that rigid enforcement often produces worse outcomes than structured settlement. A business that can operate is far more likely to repay its debts in full than one that has been forced to close.

The Out-of-Court Mechanism: A Second Chance for More Debtors

The reduction of the out-of-court settlement threshold from €10,000 to €5,000 is a structural change with significant reach. Greece's out-of-court debt restructuring mechanism was designed to provide an alternative to formal insolvency proceedings, but its €10,000 minimum excluded a large segment of micro-businesses and sole traders. Halving the threshold opens the mechanism to a much broader population of debtors.

Key Takeaways

72-instalment plan covers debts created up to 31 December 2023.
Bank account seizures can be lifted by paying 25% upfront and settling the balance in instalments.
Out-of-court settlement threshold cut from €10,000 to €5,000.
Bill expected to be submitted to Parliament imminently.
Businesses with frozen accounts should prepare documentation now to act quickly once the law passes.

Closing Insight

These three measures signal a deliberate shift in Greece's approach to tax debt enforcement — from punitive seizure toward structured resolution. For businesses and professionals carrying legacy debt from the pre-2024 period, the window to act will open as soon as the bill is enacted. Engaging a tax advisor now to assess eligibility and prepare the necessary documentation is the most strategic move you can make before the law takes effect.

Source: taxheaven.gr | Read the full article here: https://www.taxheaven.gr/news/73698/syntoma-sth-boylh-to-nomosxedio-me-th-nea-ryomish-72-dosewn