The overdue debts of the state to private entities remain unchanged, with the situation showing little sign of improvement before year’s end. This is because no immediate results are expected from the special committee of the Ministry of National Economy and Finance, which has undertaken to identify the causes of payment delays and propose solutions to this major problem for businesses and professionals.
According to data from the General Accounting Office of the State, overdue debts along with pending tax refunds decreased marginally from €3.88 billion in August to €3.77 billion in September. However, the amount remains 23.5% higher compared to December 2024, confirming that the state continues to accumulate “unpaid bills“.
Healthcare organizations continue to hold the lion’s share of debts, with hospitals and EFKA (National Organization for Healthcare Services Provision) accounting for the largest portion of outstanding payments. Payment delays to suppliers of pharmaceuticals, medical supplies, and services have created “suffocating” conditions in the sector, with businesses describing a “frozen” market.
Overdue debts: Where the state owes money
• Hospitals: Hospital debts soared to €1.66 billion in September from €1.62 billion in August and €1.13 billion at the end of 2024, representing a 43% increase within 9 months. According to the ministry, these amounts include debts that have not yet been offset by supplier rebates and clawbacks. However, delays remain significant, directly impacting companies supplying pharmaceuticals, medical supplies, and technological equipment.
• Social Security Organizations: Insurance fund debts reached €612 million in September, down from €651 million in August. Despite a small decrease, the amount remains 4.6% higher than at the beginning of the year. Of this, €249 million relates exclusively to EFKA, which continues to delay payments to private healthcare providers.
• Local Government: Municipal and regional debts stood at €240 million, slightly reduced from August but 3.9% higher compared to December 2024.
• Public Legal Entities: Increased their debts to €222 million in September, from €184 million at the end of last year, showing that payment delays are a widespread phenomenon across the entire public sector.
• State Budget and investments: Overdue obligations of the state budget reached €205 million, from €157 million last December. Of this, €169 million relates to Public Investment Program projects, revealing delays in payments to contractors and companies participating in public works.
• Tax refunds: Pending tax refunds amounted to €826 million, reduced from August (€928 million) but increased compared to December 2024 (€731 million). Of this amount, €178 million concerns cases that cannot be settled, either due to insufficient documentation or because beneficiaries have not responded to the competent services.
The Finance Ministry committee on state debts
The leadership of the Ministry of National Economy and Finance, recognizing the serious problem with state debts to private individuals and businesses, established a special committee to identify the real causes of delays. In cooperation with the General Secretariat for Information Systems and Digital Governance, a new digital platform was created for electronic invoice submission from private entities to public organizations.
Data analysis is expected to provide a complete and documented picture by early 2026 regarding:
– Which organizations have overdue obligations (over 90 days)
– The amount of debts
– Reasons for delays, despite budget provisions being in place
Organizations proven to be non-compliant will be placed under increased supervision, while their data will be published regularly, effectively creating a “blacklist” of major state debtors. As Kyriakos Pierrakakis has stated, addressing overdue debts is a “basic priority” of the ministry, as it is a chronic issue that undermines market liquidity and state credibility.
