Tsipras slams government’s bankruptcy code

The government is legislating the immediate bankruptcy and liquidation of personal assets, said SYRIZA leader Alexis Tsipras after a meeting on Tuesday with the President of the Hellenic Confederation of Professionals, Craftsmen & Merchants (GSEVEE) Giorgos Kavathas.

The meeting was held at the party’s headquarters to discuss the government’s new Bankruptcy Code, which will include both businesses and individuals. After clearing committee discussion on Tuesday, it is heading to plenary for debate and voting.

The main opposition party leader expressed his concern about the start of auctions of debtors’ primary homes in the midst of the pandemic crisis and warned of a “second big wave of debtors, including businessmen and individuals,” who will be unable to repay their loans due to job losses or minimal incomes. He added that workers who have an annual income of more than 7,000 euros but are unable to cope due to the current circumstances, are not protected and will go bankrupt.

Tsipras noted that in many such cases in the rest of the EU, the trend is to extend the suspension of bankruptcies until the middle of 2021.

Kavathas warned of a “great risk of disrupting social cohesion” from the new bankruptcy code, and added that an 81 pct of companies that are active in sectors that concern GSEVEE are facing serious debt issues after the coronavirus pandemic stalled economic activity.

The economic climate index fell 40 points, added Kavathas, “dragging down all indicators, such as turnover, employment and investments, resulting to a return to levels of economic performance akin to the height of the 2012-2013 financial crisis,” he stressed.