Greece to move 6 billion euros of debt to uncollectible ledger

Greece's tax authority is set to move an additional 6 billion euros of long-term debts into a category of "uncollectible" by the end of 2026. This move aims to provide a clearer picture of the country's recoverable tax revenue.

The Independent Authority for Public Revenue (AADE) plans to reclassify these debts, with the bulk of the amount, around 5.8 billion euros, stemming from large individual debts exceeding 1.5 million euros. Only about 200 million euros of the reclassified debts will come from smaller individual amounts.

As of March 2026, Greece's total outstanding debts to the tax administration stood at 114.516 billion euros. Of this, 35.264 billion euros, or 30.8%, had already been deemed uncollectible. With the addition of the new 6 billion euros, this figure is expected to rise to 41.264 billion euros, representing over 36% of the total debt.

Debts are classified as uncollectible when all collection efforts and enforcement procedures have been exhausted without success over decades. Recent changes to the tax code have expanded the criteria for this classification, allowing debts to be deemed uncollectible even if the debtor possesses assets, provided those assets are minimal relative to the debt. For instance, the value of real estate cannot exceed 5% of the principal debt or 100,000 euros. These debts are not written off but are placed in special ledgers, acknowledging the practical difficulty of recovery.