“RED” BUSINESS LOANS – SETTLEMENTS AND “HAIRCUT” WHAT THE LAW SAYS;

The restructuring of “Red Entrepreneur Loan” of Business and Private Citizens has already been in force, based on Law . 4307/2014, according to which urgent interim measures are adopted in order to alleviate the viable small business from their private debts, as well as extraordinary procedures for the purification with the opportunity for a “haircut” of 50% of the total debt.

The deadline for the internalization on the above Law Act, is the 31st of March 2016, and an application from the entrepreneur is mandatory.

 

CONDITIONS FOR INTERNALIZATION

BASIC REQUIREMENTS :

  • The debt’s rescheduling of the interested parties to the Tax Administration (State) or the Social Security Organizations (mainly OAEE). In other words a prior entitlement to tax regulatory regime and / or insurance debts has to be valid and has to have a paper that proves his obligations are fulfilled.

 

OTHER CONDITIONS:

  • The company should operate or profession should be exercised • Individuals should not be placed under pre-bankruptcy or bankruptcy proceedings • Individuals should not have been convicted of tax evasion, smuggling or fraud against the State.

 

BENEFITS PROVIDED by Law.4307 / 2014

  • Rescheduling or deleting (eligible) part of the debt to the Bank. It is in the bank’s The discretion to adjust or delete a minimum of 50% of the company’s debts, provided the rest of the claim that remains does not exceed 75% of the net asset position of the borrower. To activate the deletion also all remitted funds must not exceed 500.000,00 €.
  • In addition to deletion (for the remaining amount of the debt), the Bank, if it feels that the company is “sustainable” can propose a settlement of the balance of the debt, which will help maintain business.

 

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