The Greek Government is holding a public consultation about the bill on the new mechanism for settling corporate debts. However, despite the high expectations it has endeavoured to create, the arrangement proposed by the Ministry of Finance fails to reflect the existing economic situation in Greece, and chambers of commerce and businesses are already expressing concerns that many firms will be excluded from this mechanism.
This is because there is a risk that three special criteria will prevent a large proportion of enterprises from benefiting from these arrangements, namely: a) profitability for at least one financial one year during the last — economically disastrous — three years; b) the conclusion of a settlement only after 1 July 2016, and c) no creditor may hold 85% of an enterprise’s total liabilities, even though it is usual for an enterprise to maintain its borrowing with one creditor.
In view of the above, will the Commission say:
Will it propose, before the end of the consultation period, that the Greek side make adjustments to the bill, since there is a risk that a major step towards the consolidation of the banking and business landscape in Greece may have no substantive results?