ATHENS: The Greece has garnered a little over €147 million via a debt forgiveness scheme designed to bolster the state’s near-empty coffers, officials say. The finance ministry said on Wednesday more than 150,000 private individuals and companies had hastened to settle or partially repay debts to the state dating back to the 1970s.
The ministry said that under normal circumstances, repayment of such debts “is close to zero”. Among them, some 58,000 people had paid between €50 and €100 to take advantage of the scheme, which erased accrued interest and fines on their debts to the state. Greece’s international creditors have raised objections to debt relief measures, but the radical Greek government insisted when it unveiled the initiative in February that they would have a net positive effect on the budget.
Overall, the Greek state is owed €76 billion in unpaid taxes and social insurance contributions. The ministry considers that just €9.0 billion can be realistically recovered. Greece’s own debt to private bondholders and the three institutions supporting the country financially since 2010 – the EU, IMF and the European Central Bank – is around €320 billion.
