2017年-IMF国际货币组织全球_Greece_Selected_Issues_47页_1mb

Summary of Selected Issues on Greece

Core Content

This document provides an analysis of the insolvency and enforcement system in Greece, focusing on its evolution, current challenges, and policy recommendations. It also addresses tax and social security debt and pension system reforms, highlighting the broader economic and legal context of Greece's post-crisis recovery.

Main Issues and Key Findings

A. Background

• The Greek economic crisis has significantly impacted private sector balance sheets and debt servicing capacity, leading to:

  • A 25% contraction in GDP
  • A peak unemployment rate of 28% in 2013
  • A 33% collapse in corporate turnover
  • A 50% drop in property prices
  • A severe liquidity crisis and high non-performing loan (NPL) ratio (second highest in the Eurozone)
  • A 70% of GDP in uncollected tax and social security claims (highest in the Eurozone)

• Despite relatively low private debt to GDP, businesses face severe liquidity constraints due to the collapse in turnover, leading to insolvency.

B. Insolvency and Enforcement Reforms

• Greece has undergone numerous reforms in its insolvency and enforcement system over the past decade, but these have not achieved the intended effects.

Business Insolvency Reforms

• Law No. 3588/2007 introduced a modern legal framework for business insolvency, incorporating:

  • Bankruptcy procedure (modelled on German Konkurs)
  • Restructuring procedure (modelled on French conciliation)

• Subsequent reforms (2010, 2011, 2012, 2015) aimed to:

  • Streamline procedures
  • Enhance legal predictability
  • Introduce qualified insolvency professionals
  • Limit automatic stay of creditor actions
  • Provide better protection for new financing

• However, implementation has been slow, and many reforms remain untested or underdeveloped.

Personal Insolvency Reforms

• Law No. 3689/2010 (Katseli Law) introduced a personal insolvency procedure, but:

  • Included a compulsory extrajudicial phase, which complicated the process
  • Was later reformed in 2013 and 2015 to:
    • Remove the compulsory extrajudicial phase
    • Introduce a forbearance program
    • Expand discharge to include tax and social security debts
    • Shorten procedural timelines
    • Introduce a streamlined process for small debtors

• The 2015 amendments aimed to align with international standards, but caused a surge in personal insolvency applications due to perceived increased risk for debtors, leading to system paralysis and long delays.

Enforcement Regime Reforms

• The Code of Civil Procedure (CCP) was reformed in 2015 (Law No. 4335/2015) to:

  • Streamline enforcement procedures
  • Reduce delays and appeals
  • Introduce e-justice and market-based reserve prices
  • Set clear claim ranking and distribution rules

• Moratoriums on mortgage enforcement were introduced during the crisis, undermining the payment culture and encouraging strategic defaults.

Out-of-Court Framework

• The Dendias Law (2014) introduced a temporary out-of-court debt restructuring framework, offering:

  • Three mechanisms:
    • Voluntary restructuring for small businesses
    • Hybrid restructuring with court approval
    • Special administration for liquidation

• Despite its international best practices approach, the Dendias Law failed to achieve its goals, due to:

  • Lack of incentives for private creditors
  • Compulsory use of tax installment schemes
  • Limited effectiveness in resolving debt

C. Current Challenges

• The insolvency system remains underutilized, fragmented, and distortive.
• Business insolvency procedures are too complex and expensive, especially for micro and small enterprises (96.7% of Greek businesses).
• The number of insolvency cases does not reflect the actual level of corporate distress, as many cases are pre-insolvency procedures used to block creditor actions.
• The enforcement system is ineffective, with:
  • Long and costly procedures
  • Poor registration of mortgages
  • Lack of a comprehensive land register
  • Low recovery rates for secured creditors due to superior public claims
• Out-of-court solutions have not succeeded in resolving debt, due to structural and procedural flaws.

D. Policy Recommendations

• Develop a coordinated and comprehensive NPL resolution strategy.
• Streamline and simplify the insolvency and enforcement framework to make it more accessible for small businesses.
• Improve the institutional setting for insolvency professionals and ensure proper implementation of reforms.
• Align the claim ranking system with international experience.
• Enhance the effectiveness of the out-of-court restructuring framework, particularly by:
  • Providing incentives for private creditors
  • Allowing flexibility in debt restructuring
  • Ensuring transparency and fairness in the process
• Strengthen the enforcement system by:
  • Improving mortgage registration and land register completeness
  • Reducing procedural delays
  • Enhancing creditor recovery rates
• Address the misuse of personal insolvency by:
  • Introducing clearer eligibility criteria
  • Reducing abuse by non-qualified debtors
  • Ensuring fair treatment of all creditors

Key Information

• Non-performing loans (NPLs) and public debt are major obstacles to economic recovery.
• The reforms have not been effective due to fragmentation, lack of coordination, and insufficient stakeholder engagement.
• Out-of-court mechanisms have not been successful in resolving debt due to structural flaws and lack of incentives.
• The personal insolvency system is overused and misused, leading to system paralysis and long delays.
• The enforcement system is inefficient, costly, and undermines the payment culture.
• Micro and small enterprises are the most affected by the insolvency system's complexity and cost.

Conclusion

Greece's insolvency and enforcement system remains fragmented, inefficient, and underutilized, despite numerous reforms. The system's failure to effectively manage debt and support economic recovery is worsened by the high levels of NPLs and public debt, as well as the misuse of personal insolvency procedures. Policy reforms are needed to streamline procedures, enhance legal predictability, and align the system with international best practices.