C. Mixalos: Proposal on business debt settlement plan is in right direction but changes needed

The government’s proposal for the out-of-court settlement of debt for over-indebted businesses is a step in the right direction but changes are needed to ensure as many businesses as possible will benefit from the plan, the head of the Central Union of Chambers Konstantinos Mihalos said on Wednesday.

“The framework for the out-of-court-settlement of debts of over-indebted business announced by the government, even with a great delay, is a step in the right direction,” he said at an event organized by the Chamber and social partners, adding however that Chambers should have an active role in the plan.

Some of the changes presented by Mihalos include allowing more viable businesses to settle their debts, put in place strong safeguards to avoid system abuse by perennial non-payers, and to ensure the effectiveness of the mechanism, given that the system will have to handle a large number of cases.