Government to Implement New Debt Monitoring Registry by September

Government to Implement New Debt Monitoring Registry by September

The Project Will Be Rolled Out in Three Phases

The state is set to purchase advisory services this September to develop a registry for monitoring debts. This move will enable the government to track debts owed by individuals and businesses to public bodies, municipalities, semi-governmental organizations, banks, and credit purchasing companies.

For this initiative, the Ministry of Finance has requested the release of €67,950, a proposal already submitted and slated for discussion in the Parliamentary Committee on Finance on Monday, September 25th.

According to the official document from the Ministry of Finance submitted to the House, the state intends to sign the necessary contracts by the end of September. These contracts will address the initial phase of preparing an action plan related to the development of the debt monitoring registry. The ultimate aim is to better design and implement targeted policies to prevent and manage private debt accumulation. Additionally, this system will be used by the state to assess both individuals and legal entities, potentially allowing the government to enter into agreements with them based on their offerings.

In detail, the proposed registry will encompass the debt amounts of both individuals and legal entities owed to the public sector and credit institutions, including credit purchasing companies.

The Action Plan will encompass:

1. Design and development of a credit obligation registry to create creditworthiness ratings for individuals and legal entities.

2. Development of a creditworthiness assessment system for individuals and legal entities.

3. Integration of the system with other creditworthiness assessment agencies.

The Ministry of Finance detailed that the project will be rolled out in three phases:

1. Collection and analysis of individual obligations to the central government (e.g., income tax, social security, corporate tax, road transport department, land registry, etc.).

2. Adding obligations of individuals to credit institutions and credit purchasing companies (drawing data from the Artemis database).

3. Incorporating obligations of individuals to local government authorities, like municipal and semi-governmental bodies.

The Ministry of Finance highlighted that the contract for preparing the related Action Plan, priced at €62,000, will be awarded to PD Company. PD is an "internal consultancy" firm of the German government, serving exclusively federal, state, and community governments, including other public organizations. This also includes clients from the Republic of Cyprus. Furthermore, the Ministry notes that the state will also require legal advisory services to address and potentially resolve arising legal issues.