Business owners should be vigilant and should try to anticipate potential financial difficulties. Signs of these difficulties may be the loss of regular clients, decreased sales, problems with suppliers, inefficient management of staff, reduced reserves, or difficulties paying invoices on time.
Stabilising a business
The relevant law on the regulation of company debts to banks has entered into force. The law has divided regulation on loans into categories, to facilitate companies and banks (e.g. regulation of overdue and terminated contracts, overdue debts from lease transactions etc.).
Access to different sources of finance can help overcome financial difficulties.
When filing for bankruptcy is the only option left for a business owner, it pays to cut your losses, initiate proceedings sooner rather than later, and move on to a new project.
The Ministry of Finance has also formulated the application forms for past due and non past due loans.
Order for payment
In the case of issuing a payment order, the relevant titles or documents (original or certificed copies) should be submitted either to the District Court (Irinodikio), or to the Single Member Court of First Instance (Monomeles Protodikio). Based on these forms, a payment order is to be submitted along with a copy of these, a court stamp and prepayment of solicitor fees.
Deferment of payment
Applications concerning the deferment of payment are also seen as a deed, exercised through submission to the opposite party within 15 working days following the payment order. Court proceedings take place to discuss this.
Through the application for deferment, it is requested that all execution (foreclosure) acts are suspended until a decision on the suspension is reached. Should the court consider it possible that the application for deferment will be accepted by the court, it will then order suspension of all execution transactions, until a decision has been reached with regard to the suspension of the same payment order.
It is necessary to submit written notice of termination for an employment contract, providing for compensation, the amount of which is subject to tax through single depletion of tax liability. Notice time corresponds to the years of employment. A two-month notice applies when the employee has worked for the company for a period of between two months to one year.
The relevant forms are available through the Greek Manpower Employment Organisation (OAED) at the website below:
Greek Chambers provide basic information to companies, through their legal services.
Insurance-related information depending on the employee's remuneration is available on the website of the Ministry of Labour and Social Security:
The Economic & Industrial Research Institute (IOVE) is a private non-profit, charitable, research organisation that seeks both to promote scientific research on current issues faced by the Greek economy, and to provide objective information and submit proposals that are useful in shaping policy.
The General Secretariat of the National Statistical Service of Greece (NSSG) is the official body providing statistical information. It collects and processes statistical data and is responsible for disseminating statistical information to public and private institutions and to citizens.
As part of the first "Improving the Business Environment" correction point of the "Competitiveness" Operational Programme, the Ministry of Development has set up Centres for Business and Technological Development (ΚΕΤΑ):