Debt management companies, specialized law firms, and call centers are expected to compete for contracts to support the country’s Social Security Debt Collection Center (KEAO), a key agency under the national social insurance institution e-EFKA.
The effort targets a specific category of debt—contributions owed by self-employed professionals and farmers—who account for over a quarter of the total arrears recorded by KEAO. The government sees this partnership with the private sector as a way to enhance the efficiency and effectiveness of its collection mechanisms, ultimately reinforcing the sustainability of the Greek social security system, which has faced chronic funding issues for decades.
The new system, scheduled to be implemented by early 2026, will allow selected private firms to offer technical and advisory support to e-EFKA. These companies will not directly collect payments or initiate enforcement actions. Instead, they will provide expertise in debtor profiling, propose customized debt settlement plans, and help maintain KEAO’s debtor registry.
Legislation enabling this collaboration has already been passed by the Greek Parliament. The upcoming tender, which is expected to draw international interest, represents a strategic shift toward outsourcing debt recovery management in an effort to unlock revenue from one of the most problematic segments of public finances.
Greece currently collects approximately €2 billion annually from overdue social security contributions. However, officials believe that with private-sector involvement, these collections could potentially double. The new model gives private advisors the authority to propose tailored settlement arrangements for debtors, taking into account each individual’s payment history, financial condition, and future prospects. The idea is to intervene early—before debts spiral into sums too large to realistically recover.
Under the proposed system, repayment plans could extend up to 120 monthly installments, or even longer in specific cases. These arrangements will be subject to strict compliance conditions, including review clauses and automatic cancellation for non-compliance.
While private firms will play a critical role in the strategic design of recovery efforts, they will remain behind the scenes in terms of actual collection, which will continue to be handled by public institutions. This distinction is important in a country where the involvement of private entities in public revenue matters often stirs public debate.
The scale of the challenge is significant. According to official figures, total overdue contributions to Greece’s social insurance funds amount to roughly €50 billion. Of that, €32 billion is principal debt, while the remaining €18 billion consists of penalties and interest. Alarmingly, about €10 billion of that total is considered non-recoverable, either due to the death of debtors, bankruptcy, or long-term insolvency.
