Μake us preferred on Google Greece is preparing to introduce two digital tools to monitor private debt and assess the creditworthiness of individuals and businesses, creating what is being described as a state-run credit score.
The two systems are the Private Debt Monitoring Registry and the Credit Assessment System. Together, they are intended to provide a unified picture of the financial standing of individuals and legal entities.
The credit assessment will be carried out following an application by the individual or business concerned, or with their explicit consent when requested by third parties. The resulting rating will range from A to D, with A representing an excellent credit profile and the lower categories indicating a higher risk of default.
The system could also be used beyond traditional banking transactions, including for commercial credit and private agreements.
How the new systems will work
The Private Debt Monitoring Registry will collect anonymous data on the development and characteristics of private debt in Greece. The aim is to give the government a more comprehensive picture of the overall level and structure of debts owed by individuals and businesses.
The data will cover debts to the government, social security funds, municipalities and other public-sector bodies, as well as obligations to financial institutions, utilities, telecommunications providers, energy companies and other businesses.
The second tool, the Credit Assessment System, will collect and process data from public-sector bodies to create a unified picture of an individual’s or company’s creditworthiness.
The rating will measure, based on specific data, how consistently an individual or business meets its obligations to the government.
The system will also be able to exchange credit ratings with credit-reporting organizations such as Tiresias, Greece’s credit information provider, allowing for a more comprehensive assessment of an individual’s or company’s financial behavior.
The new tools will move private debt monitoring toward an increasingly algorithm-based assessment, with the financial behavior of individuals and businesses evaluated based on their obligations to tax authorities, social security funds and, at a later stage, the financial system.
What applies in Europe
Credit information and creditworthiness assessment systems have existed for years at both the European and national levels. The European Central Bank, for example, operates AnaCredit, a harmonized database containing detailed information on bank loans in the euro area.
At the same time, European law treats creditworthiness assessment as a separate and tightly regulated area. The EU’s artificial intelligence regulation classifies AI systems used to assess the credit score or creditworthiness of individuals as high-risk, because such decisions can affect access to financial resources or essential services.
European legislation also prohibits generalized social scoring of individuals when assessments are based on social behavior or personal characteristics and can result in detrimental treatment unrelated to the context in which the data was collected.
