The vast majority of debts with him are settled EFKAwith the consequence that every quarter exorbitant amounts of fines and surcharges are added, but which dramatically increase the total amount.
According to exclusive information from “N”, during the second quarter of this year the debt to Social Security, accumulated at the Insurance Debt Collection Centre (KEAO), rose to the level of 48 billion euros. This is a new record, as a quarter earlier it was calculated at 47.88 billion euros, which means that in just three months it registered an increase of more than 112 million euros.
All this despite the fact that KEAO services are able to collect significant amounts of overdue debts every month. In the second quarter, 490 million euros were collected, which shows that the mandatory collection measures and more targeted controls carried out by the competent EFKA services are bearing fruit. The trend is similar in the two months of July – August, as, despite this being the peak summer holiday period, it was possible to collect more than 345 million euros.
Late
In more detail, the data that “N” presents to you today shows that the debt due to non-payment of insurance contributions, of individuals and legal entities, which has become due and has been registered in the KEAO register, amounts to 48 billion euros. Compared to the 47.88 billion euros that were officially recorded in the Centre’s first quarterly debt report for this year, there is an increase to the level of 112 million euros. However, compared to the 46.54 billion euros that was the debt in the second quarter of 2023, there is an annual increase of 1.46 billion euros.
The specific upward trend is mainly due to surcharges and fines, as the collections of the competent departments of KEAO are constantly improving. It is characteristic that the internal analyses carried out show that almost 1/3 of the accumulated debt at EFKA, i.e. around 16 billion euros, comes from fines.
This shows that the regulatory process is not working as expected, resulting in debtors accumulating debt and disproportionately growing it, as fines and surcharges follow. It is characteristic that, according to the data for the first quarter of the current year, of the 26.09 billion euros that were included in some of the old or current schemes, 70.14% or 18.3 billion euros are now outside the monthly contribution payment process. This means that for most of the regulated debt, the regulation has been lost and now debtors face the activation of mandatory collection measures. It should be remembered that at this stage the only configuration that is active is the fixed one in 24 instalments.
Furthermore, the data on the age of debts with a rate above 65% are maintained for an additional quarter. This means that of the total of 48 billion euros, more than 31 billion euros (principal debt and additions) arose before 2009, that is, before the start of the major financial crisis that has plagued the country for more than a decade. Therefore, these are debts that must be clarified as to which can be settled and which cannot, especially if they were contracted by companies (legal entities).
The course of the recipe
As regards revenue trends, the data collected by KEAO and presented by “N” shows that over €1.28 billion was collected in the eight months from January to August. The target of €1.65 billion in revenue set for this year is therefore considered entirely achievable, as there are four more months in which collections will continue. In fact, if this revenue trend continues, it is possible that KEAO will set a new record for debt collections, which could even approach €2 billion.
In more detail, €448 million was raised during the first quarter. In the second quarter, the revenue trend improved further, with a further €490 million raised. Specifically, in April, revenues reached €178 million, in May they fell to €165 million and in June they were limited to €147 million. However, in July, KEAO’s revenues recovered significantly, reaching €180 million, while in August, the peak month of the summer holidays, it was possible to raise a further €165 million, which gives optimism that the positive trend in revenues will continue in the next quarter until the end of the current year, from September onwards.
