Athens, 23 February 2017


Subject: Bill ‘extrajudicial Mechanism Business Debt “.

The bill “extrajudicial Business Debt Adjustment Mechanism”, which is posted to a public consultation, aims to address the most important problem today runs the private sector of the country: red loans and indebtedness of enterprises. Addressing the business indebtedness problem is of major importance both to improve the business environment and to restore confidence in the banking system and a necessary condition for the country to embark on a sustainable growth trajectory.

In the general context of the GSEBEE believes that the bill is moving in the right direction, because it addresses the most important aspects and indebtedness sources systematically. At the same time, it will be taken care of with regard to specific parameters (detailed positions on technical issues will be sent to the relevant ministries)

1) Greater flexibility in the eligibility of small enterprises (the horizons evaluation is proposed to exceed 3 years, with alternative criteria such as turnover trend and the company’s commitment to participate in organized collaborative scheme to be taken into account).

2) As to the debts, it is proposed to reduce the debt threshold to € 10,000 while there should be an orderly arrangement recalculation of principal and legal interest, penalties and fines. On the basis of this loan restructuring terms with justice be made.

3) Special considerations are needed in cases that can not be reached to 60% of creditors, because of the debt structure (eg someone owns 41% of the debt and does not allow the restructuring).

4) Decrease bureaucratic abomination: many of the required documents can be searched automatically and posted / exported automatically to the qualification application. Especially for state fees related persons, we believe that should not be negative burdens small business such a criterion.

5) will be included in eligibility to debt adjustment former professional / pensioners who do not maintain a business operator, but had received a business loan and stopped doing business within the crisis. A similar provision should be made for guarantors / co-debtors.

6) protection and safeguarding of indemnity of government officials and bank executives agreed debts and loan restructuring. In particular, in cases erasure small business debts, the process should be more flexible and efficient. Under the recapitalization of the banks’ portfolios should be given to managers greater freedom to negotiate and apodesmefsis the judicial investigation perspective (with rules).

The GSEBEE believes that this bill is urgent to be submitted directly to the vote in the Greek Parliament – with the necessary modifications to be proposed and agreed with the production organizations – to give the opportunity to the domestic business to restart immediately after a long period contraction in investment demand and the decline in business activity. The government and institutions shall assume responsibility for any further delay there, which greatly harms the national economy and prevent the consolidation business and the banking system.