Portugal’s Social Security department has taken charegs over debtors' property and has blocked income to the tune of €4.6 billion in 2013, an increase of 43.7% over the previous year.
In 2012 things were bad enough for people struggling to pay their debts to the state with the value of seized wages, bank accounts, vehicles and real estate and other valuables increasing 40% over 2011.
The 2013 figure shows two things - the dire state of the personal finances of many companies, families and individuals, and the state’s powers and uncompromising attitude towards those that are unable or unwilling to pay.
Data released half way through 2013 showed it was going to be a record year as the Social Security department had already initiated more foreclosures than in any previous twelve months.
The total amount owing in agreed payment plans was €520.6 million at the year end which is lower than at the end of the year before (€720 million).
The spokesman from Social Security, Pedro Mota Soares, said today that "the number of new agreements is similar for the two years” but the overall value is lower in 2013 due to the fact that the total value of debts is lower.
In addition to the €520.6 million that will be recovered in installments, the Tax Amnesty at the end of last year allowed the department to recover €232 million of arrears.
The department has yet to announce the total it currently is owed but the end of 2012 figure was just under €3 billion.
