The Ministry of Finances is considering implementing a controversial decision in order to curb the perpetual increase of outstanding debts towards the State. Debtors who do not settle their debts towards tax offices and insurance funds will not only be unable to get a tax clearance certificate, but they will also lose their Tax Identification Number itself, without which they cannot perform any transactions.
This measure has been pushed forward by the troika representatives, which, as expected, has caused fierce reactions from many small and medium-sized enterprises who fear it will lead to further business defaults. With businesses unable to make any transactions with other businesses and customers, they will be unable to receive or pay loans, collect tax returns, transfer property or participate in public competitions.
The Ministry of Finances has estimated that the State is owed about 60 billion euros and despite the many settlements in the past years, the debts continue to increase with at a staggering rate. In the first seven months of 2013 a total of 679 million euros of new debts towards the State was generated, which 959 million of debts from previous years was collected. In total 1.638 billion euros we collected in the seven months, increased by 412 million (35%) compared to the same period in 2012.
