- Funding Programme
- Structural Reform Support Programme (SRSP)
Strengthening the insolvency and restructuring framework in Greece
The Commission aims to help Greece with fully complying with Directive (EU) 2019/1023 on restructuring and insolvency frameworks and to educate and raise awareness of key stakeholders and the public on the new legislation. This should ensure that households, entrepreneurs and businesses in financial difficulties can seek support at an early stage in order to stay in business and thus preserve their employees' jobs.
Two major issues were identified in the Greek insolvency framework. Firstly, there are multiple systems for dealing with bankruptcy/insolvency. Secondly, there is a significant backlog of household insolvencies pending at courthouses. These two factors, amongst others, are hindering the efficiency and effectiveness of the entire framework. Greece is committed to put in place a consistent and unified framework for settling corporate and household debt as well as to clear the backlog of household insolvency cases. The need to transpose the Restructuring Directive and to reduce the private debt stock represent an excellent opportunity to improve the efficiency and effectiveness of the restructuring and insolvency procedures.
- Assistance with the drafting and adoption of secondary legislation to ensure a consistent and uniform transposition of the Restructuring Directive in Greece.
- Assistance with the implementation of the Single Insolvency Framework in Greece.
- Provide trainings for key stakeholders that intervene in the handling of early warning tools and/or in the course of restructuring, insolvency and procedures leading to a discharge of debt.
- Prepare a targeted campaign for key stakeholders and the public to raise awareness about the latest legislative reforms to the framework governing the procedures concerning restructuring, insolvency and discharge of debt.
The beneficiary institutions are the Ministry of Finance (MOF) and, particularly within the MOF, the Secretariat Special for Private Debt Management (SecPD).
The results are the following:
- Greece adopting and publishing the laws, regulations and administrative provisions necessary to comply with the Directive (EU) 2019/1023 on preventive restructuring frameworks.
- Greece adopting and publishing the laws, regulations and administrative provisions necessary to implement the Single Insolvency Framework in harmony with the Restructuring Directive.
- Key stakeholders being trained and raising awareness about the latest reforms to the framework governing restructuring, insolvency and procedures leading to a discharge of debt.
- Fewer potentially viable companies ending in liquidation and fewer employees losing their jobs.