A new special arrangement allowing overdue debts to Greece’s social security agency (EFKA) to be repaid in up to 72 monthly installments is set to go into effect in June. The program arrives amid stark figures: seven out of ten self-employed workers and farmers carry outstanding balances with EFKA, with total overdue contributions to Greece’s insurance funds sitting at €51.31 billion.
The plan involves no debt write-down and operates along the same lines as existing standing arrangements — carrying an interest rate of 5.84% and a minimum monthly payment of €30 — while simply extending the repayment window. It covers debts accumulated through December 31, 2023, that are not currently enrolled in any active repayment plan. Since more than 90% of all overdue balances were built up before that cutoff date, the vast majority of outstanding obligations would qualify.
Enrollment is handled by request, with no means-testing or asset review required. However, there is also no option to reduce the principal owed. Once enrolled, enforcement actions such as wage garnishments and property auctions are suspended, and the debtor receives both tax and social security clearance certificates.
The plan does demand consistent on-time payments: even a single missed installment triggers a 15% surcharge.
One Key Condition
The sole prerequisite for staying in the program is that any new overdue debts incurred after 2023 must either be paid off in full or placed under a separate arrangement. For many, this is the biggest stumbling block. Thousands of insured individuals are caught in a debt spiral — unable to keep up with current contributions due to cash flow problems, let alone tackle older ones.
It’s precisely for this reason that self-employed workers and farmers are calling for even more installments — up to 120 — arguing they are too financially stretched to be realistically helped by the current terms.
Another significant barrier is the 5.84% interest rate, which many consider too high given the economic realities most debtors face. On top of that, the program provides no reduction in penalties or late fees, which often make up a substantial share of what is owed.
Professional associations are already pushing for improvements before the plan is finalized, with their main asks being a lower interest rate, more installments, and a partial waiver of penalties — conditions they say are necessary to make the program genuinely workable. Industry voices warn that without meaningful relief incentives, this new arrangement risks repeating the failure of the existing 24-installment plan.
As a reference point, overdue debts to the insurance funds rose by roughly €2 billion over the course of 2025, reaching €51.31 billion by year’s end. Of that total, approximately €10.5 billion is considered to have little to no realistic chance of recovery.
