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PPC hires consortium to collect €2.4bn debts, increases interest on outstanding bills

Greece’s Public Power Company (DEH) is turning to radical measures to tackle the problem of unpaid bills, amounting to more than 2.4 billion euros. The PPC not only increases the interest rate in outstanding bills, it also hires collector agencies to scare the hell out of those who do not pay their bills.

According to media information, the PPC has already decided to hire the Fina City Corporation, a consortium consisting of  banks, law firms and foreign enterprises. “IBM Hellas, Deutsche Bank London, Estia Business Group, Deloitte Business Solutions, KPMG, Qualco* UK, Kapa Research and law firm Andrikopoulos participate in the Fina City Corporation,” notes bankingnews.gr.

At first stage, the Fina City will start working on a strategy plan on how to collect the debts.

The final decision on the Consortium hiring is yet to be approved by the PPC board of directors, but it is considered a certain.

Τhe Fina City will be paid on commission according to debt collection it achieves:

  • maximum 8% for customers with active contract
  • 12% for customers without active contract and for debts up to 2,000 euros
  • for bigger debts, the public tender foresaw 10% commission for debts up to 30,000, 20% for debts up to 50,000 and 30% for debts above 50K.
  • Maximum budget is 12 million euros.

When the electricity market opened a few years ago, several PPC customers with unpaid bills left the Public Company and switched to private suppliers in an effort to get rid of the PPC debts.

Now this runaway-from-debts tactic is over.

The PPC introduces a 3-speed scheme on interest rates for outstanding bills.

1. 5.25% interest on all outstanding bills (households and businesses)

2. 6% interest for outstanding bills of the public administration

3. 7% interest for outstanding bills that are not included in repayment arrangements.

The interest rate on public administration was passed through a law in Parliament in 2013 but it was never implemented until now.

*Surprise! Qualco founder Orestis Tsakalotos is a cousin of Finance Minister Euclid Tsakalotos. When the news was published, finance minister sources claimed that there is such thing as “family responsibility.” The sources implied that the two cousins were not close.

A few years ago, when collector agencies working for the banking sector started to harass debtors on the phone, it was discovered that one of these agencies belonged to the son of a former New Democracy Minister. Unfortunately, I cannot remember if there was some comment by Syriza at that time. And I have no time to google for it. But as said: there is no family responsibility when it comes to collect debts. Everything happens for the sake of Greece 🙂

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4 comments

  1. hahahhaah good luck with that! (Syrizee, who left DEI with debts of 1250 EUR and has no intention of paying them, they made enough money from me with their expensive bills 15%-20% higher than the company i am using now)

  2. Hecataeus Miletus

    But, as many great ideas in Greece that are floated to the public like this, correct me if I’m wrong, but doesn’t the governement (or parliament) have to vote on this type of action before becoming a law? I’m always fascinated by many great ideas that the government of Greece comes up with, many of which I support, but then as time passes, I ask my Greek friends what happened to “this proposal, that proposal” and it seems to have evaporated like water in a puddle as it did not get support in the parliament.

    Will this measure by DEI get approved by parliament, and does it have to?