Greece Opens 72-Installment Debt Platform: How Monthly Payments Are Halved

Greece is set to unveil a new debt regulation program that will allow taxpayers to pay off overdue tax liabilities in up to 72 installments. The application platform is expected to open mid-week or by July 20, offering a significant relief measure for hundreds of thousands of individuals and legal entities burdened by old, unregulated debts.

The initiative, spearheaded by the Independent Authority for Public Revenue (AADE) and framed by the "Pierrakis Law" for private debt, is described by the Minister of National Economy and Finance as a "second chance" policy aimed at economic reintegration. This new 72-installment plan for tax debts will run concurrently with a similar program for overdue social security contributions to the e-EFKA.

Both programs target old debts accumulated up to the end of 2023. When combined with the existing 24-installment plan for newer debts, the new regulation can effectively halve the monthly payment for many debtors. The application portal on myAADE will display the restructured debt and payment schedule, with longer repayment periods resulting in lower monthly installments but higher overall interest, and vice versa.

A key feature of this new regulation is its distinction between debt categories. Debts incurred up to December 31, 2023, are eligible for the 72-installment plan. However, debts arising from January 1, 2024, onwards, or those already under a payment arrangement, will continue to be managed under the standard 24-installment regulation. This separation aims to prevent a mass abandonment of existing payment plans while also managing expectations for those hoping for a single, extended repayment option for all debts. The new regulation is temporary, remaining open until December 31, 2026, and is expected to benefit over 1.5 million individuals and legal entities with pre-2024 outstanding debts.

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This is a second chance policy. But essentially, it is an economic reintegration policy.