Greek Government Measures following the bankruptcy of Thomas Cook – What was decided for businesses and employees

Business and Employee Measures Affected by the Thomas Cook Canon / Photo: AP / Alastair Grant
Support measures for businesses affected by the Thomas Cook “canon” but also for workers have been decided by the government.

The measures were decided after a meeting at the finance ministry, in co-operation with the labor and development ministries. For the employees it was decided:

Reduce the number of stamps needed to pay the unemployment benefit from 100 to 80. There will also be an extension of the one-month unemployment benefit payment period. The favourable arrangements will apply to workers who are fired prematurely by companies affiliated with Thomas Cook.
The OAED will develop and activate a special job support program so that affected businesses will not be fired.

Measures for businesses that hit the Thomas Cook problem
At the same time, measures were taken to liquidate the businesses hit by the bankruptcy of Thomas Cook .

Thus, the VAT payment deadline is suspended for 6 months at a rate equal to the percentage of turnover that each company had with the bankrupt company. The suspension applies to companies with more than 25% of their turnover coming from Thomas Cook customers . The process of documentation of the right of suspension will be carried out at the DOE where the affected companies are located.

Also, the Hellenic Development Bank (formerly ETEAN) is working out a support plan for companies affected by the shutdown of Thomas Cook. More specifically:

For companies that have been lent through the ATPIC fund, ways of revising the terms of lending are already being sought with the partner banks.
Interest-free loans are also being considered with the necessary grace period to facilitate cash flows of companies that have been reported to have been directly burdened by Thomas Cook’s bankruptcy.

Business tax relief
In addition, it has been decided to prioritize the investment controls that these companies have submitted to the development law in order to accelerate the disbursements in question.

For business tax relief, a simplification of the Thomas Cook invoice deduction procedure is being considered , in combination with an extension of the deadline for applying for a tax deduction for the tax year 2019. This provision will be finalized shortly.

Source – 

Leave a Reply

Your email address will not be published. Required fields are marked *