The Single Social Security Entity (EFKA) has the potential to collect an extra 4 billion euros from large debtors and debts with disproportionately high additional fees if the right mechanism is put in place. Despite being understaffed, the Social Security Debt Collection Center (KEAO) manages to collect around €1-1.5 billion annually through various measures.
The total debts have reached a concerning €47.88 billion, prompting the government to consider new strategies. One proposal includes creating a single blacklist for debts to both the state and pension funds, as the current lack of information sharing between EFKA and KEAO hinders efficient debt collection.
Another suggestion is the collaboration with private entities to target debtors who can afford to pay. Currently, debtors face steep additional fees that can exceed the main debt due to an 8.5% annual interest rate without a cap. This rigid system makes it difficult for debtors to settle their debts effectively.
With over 6,000 debtors experiencing inflated additional fees, it is clear that a more flexible and efficient debt collection approach is necessary to address the growing debt crisis in Greece.
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