According to the amendment of the Ministry of Labor, at the level of 5.5%, the interest rate, which is burdened with regulated debts to insurance funds, is “frozen” for one year. At the same time, debtors are showing particular interest in a fixed scheme of 24 payments, which was recently voted for. with information from “K”, during the first period of its application, 30,153 debtors have already joined, and another 13,271, who were already in 12 installment arrangements, have chosen one of the 24. In total, they have joined the 24 installment clause for 261.14 million euros. The Ministry of Labor has adopted another favorable provision to make debt settlement more attractive, especially for small debtors, by ensuring that interest rates are free from decisions of the European Central Bank (ECB) for at least a year, and on the other hand to show all parties that this is the last chance, before the start of enforcement measures.

In particular, with an amendment submitted to the Parliament of the Ministry of Labor, interest rates that are burdened with debts to insurance funds are “frozen” retroactively from September 13, 2022 and for one year, in order to align with the corresponding forecast. Ministry of Finance and, above all, to prevent the heavy burden of citizens indebted to insurance funds from a constant increase in interest rates through the ECB. It is noted that the interest rates of the agreements already in force (valid until September) are stable and do not depend on the actions of the ECB or on the new provision.

In practice, the new provision results in an interest rate on regulated debt of 5.5%, i.e. 5% based on regulation, plus 0.5% due to the ECB rate, as it was before 09/13/2022, and not 2% as it is today. Accordingly, for debts that are not regulated, the interest rate is “frozen” for one year at the level of 8% plus 0.5%, i.е. 8.5%, not 10%.

Of great interest is the fixed arrangement of 24 installments, which was recently voted for.

After the adoption of the relevant provision, today, when a vote on the bill of the Ministry of Labor on housing and communal services is expected, a race is planned for the competent services of the Center for the collection of insurance debts to recalculate the installment plan, and then a “safari”. to collect part of the ever-growing debt to insurance funds.

Debt 45.46 billion euros

It is recalled that, based on the latest available report of the KEAO, at the end of September, the total debt to the KEAO was 45.46 billion euros. The total number of active agreements was 356,208, and the settlement amount exceeded 4.2 billion euros. In particular, in the “fixed” agreement of 12 payments at that time, 97,559 active debtors were registered, who regularly paid their monthly payments, and the total repayment amounted to 578,464,106 euros. For the quarter, debt increased by 2.06 billion euros solely due to the increase in ECB interest rates, which began in July last year.