First figures from out-of-court settlement process for arrears to Greek state, banks revealed

Taxpayers and legal entities who sought recourse to an out-of-court arbitration mechanism enacted by the Greek government for settlement of arrears to the state (tax bureau, social security funds) and banks have, on average, achieved a repayment period of 20 years, and often with write-offs of a portion of the outstanding debt.

Candidates applying for the process are, by and large, taxpayers, at 74 percent, with the rest being legal entities, mostly all commercial businesses.

The framework includes partial write-offs for eligible candidates, up to 75 percent of the primary debt, and up to 85 percent for interest, penalty interest and fines.

For arrears owed to commercial banks in Greece, the maximum write-off foreseen is 80 percent, and 100 percent of tacked on interest.

Based on current figures, the average write-off for arrears to the state is 22 percent; 31.5 percent for credit institutions.

Write-offs for mortgages reached 23.5 percent, on average; 40.1 percent for business loans and 31.9 percent for consumer debts.

The average repayment period for arrears to the state is 18 years; 15 years for debts owed to credit institutions.