Greece ponders how to deal with rising unpaid private debt, which hit 88 pct of GDP

The unpaid debt is made up by non-performing loans (NPLs), which stood at 77 billion euros at the end of March, unpaid taxes, which reached 66.4 billion at the end of May, and unpaid social security contributions (SSC), which are seen at 16 billion.

More than half or the NPLs stem from corporate loans (42 billion euros) followed by housing NPLs at 25 billion and consumer NPLs at 10 billion. The NPL ratio increased to 33.5 percent in the first quarter of 2014 from 31.9 percent at the end of 2013. This corresponds to a rise of NPLs by 3.7 billion in Q1 – almost 1 billion per month.

The latest figures provided by the General Secretariat of Information Systems showed new unpaid tax obligations generated within 2014 stood at 5.2 billion euros in May. This corresponds to an average monthly new tax debt of 1.04 billion. On top of that, legacy debt by the end of 2013 amounted to 61.2 billion, bringing the outstanding figure of unpaid taxes to 66.4 billion.

New unpaid private debt deriving from NPLs and unpaid taxes is increasing by around 2 billion euros each month so far in 2014.

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