The Ministry of Finance has issued a stern directive to football clubs participating in the Debt Repayment Scheme, demanding they settle €35.6 million in outstanding debts to the state, accrued between July 2007 and March 2023.
In a document submitted to the House of Representatives Committee on Finance, the ministry detailed club-specific debts and required monthly repayments.
The Tax Department recently sent a letter to the Cyprus Football Association (CFA), urging first-division teams to comply with the government’s May 2023 plan, which includes paying instalments, settling older debts, and submitting tax returns.
The latest scheme extends debt arrangements to include overdue taxes from April 1, 2021 to March 31, 2023, without additional interest or charge reductions.
The repayment period has been shortened from 180 to 168 instalments.
Whilst the plan stipulated that creating new debts would lead to exclusion, this provision was not enforced. The Ministry of Finance provided clubs with new certification, allowing their participation in domestic and European competitions.
Notably, €33.1 million of the debt, dating to pre-2021, remains interest-free due to a previous government decision. An additional €10 million in debt was written off at that time. New debts accrued after April 2021 are subject to interest and charges.
The government’s recent attempt to increase betting tax to facilitate debt repayment was shelved following political opposition.
State Aid Control Commissioner Stella Michaelidou has warned that the government’s proposed bill may constitute incompatible state aid. She recommends consulting the European Commission, particularly if the plan is not applied or adhered to.
The Ministry of Finance’s document to the House of Representatives details individual club debts and required repayments, with new debts since the repayment plan totalling €2.4 million.
Specifically, the football clubs owe the following amounts, from July 2007 to March 2023:
- APOEL Nicosia: Its total debts were €13.7 million in March 2023. Of these, an amount of €671 thousand was debt created from April 2021 to March 2023. According to the agreement, APOEL must pay the state approximately €82 thousand every month.
- OMONOIA Nicosia: Its total debts were €5.3 million in March 2023. OMONOIA, after the new plan, did not create additional debts, according to the Ministry of Finance document. Every month, it must pay the state an amount of €32 thousand.
- AEL Limassol: Its total debts (March 2023) were €4.5 million. An amount of €322,117 concerned debts of the period from April 1, 2021, to March 31, 2023. According to the plan, AEL must pay an installment of €26,920 every month.
- APOLLONAS: Its total debts to the Tax Office were (March 2023) €4.1 million, of which €3.3 million were old debts, and €783 thousand were debts of the period from April 2021 to March 2023. The team’s monthly instalment was set at €24,740.
- ANORTHOSIS: It owed €4 million in March 2023, of which €88,545 concerned debts of the period from April 2021 to March 2023. Every month, ANO must pay an instalment of €24,198.
- Ethnikos Achnas: Its total debts were €1.15 million until March 2023. Of these, an amount of €37,430 concerned debts after the new plan. Every month, it must pay an amount of €6,887.
- Ermis Aradippou: Its total debts were €543,401 in March 2023. Of these, €671 thousand concerned debts between 2021 and 2023. Its monthly installment amounts to €3,234.
- ARIS Limassol: Its debts were €477,371, of which €18 thousand concerned debts between 2021 and 2023. Every month, it must pay an installment of €2,841.
- DOXA KATOKOPIAS: Its total debts were €440,568, with a monthly repayment instalment of €2,622.
- ENOSIS NEON PARALIMNIOU: Its accumulated debts were €405,324. The team has not created new debts after the new plan. Every month, it must pay the state an instalment of €2,412.
- NEA SALAMINA: Its total debts are €409,019. It did not create new debts after the new plan. Every month, the club must pay an instalment of €2,434.
- OTHELLOS ATHIENOU: Its total debts in March 2023 were €96,249. Monthly installment: €573.
- Akritas Chlorakas: Its total debts are €87,888. Notably, an amount of €34,114 concerns old debts, and €53,774 concerns debts of the period from April 2021 to March 2023. Monthly installment: €523.15.
- PAFOS FC: Its total debts are €74,382, of which an amount of €303,365 concerns debts of the period from April 2021 to March 2023. The monthly instalment was set at €442.75.
- PAEEK FC: Total debts: €27,342. An amount of €3,908 was debt of the period from 2021 to 2023. Monthly installment: €162.75.
- OLYMPIAKOS Nicosia: Total debts: €586,36 in March 2023. Monthly instalment: €3.49.
- AEK Larnaca, Karmiotissa Polemidion, and AEZ Zakakiou did not have tax debts in March 2023, according to the Ministry of Finance memorandum.
