While the coalition government is prepared to carry out a generous settlement for debts towards the tax office and insurance funds, the troika has warned it will not approve of any actions that will risk fiscal revenues.
The Ministries of Finances and Labor are currently examining the possibility of increasing the number of installments to 24-100 (depending on the sum of debts), with a 50-euro-minimum monthly payment.
The goal is to provide some relief to some 3,380,358 taxpayers with debts towards the tax office and about 1,243,000 who have debts towards insurance funds. In total, the debts towards the tax office are about 68 billion euros, while insurance funds are owed about 10 billion euros.
The IMF appears to be the most adamant about refusing a new settlement, as its believes that a new settlement would generate expectations for further settlements, which in turn will encourage non-payment and the creation of further debt. Furthermore, the IMF appears to be in favor of implementing even harsher measures, if the case of settlements.
Despite the troika’s reservations though, government officials appear confident that an agreement can be made in September, when talks recommence.
