Croatia’s state-run Financial Agency on Monday began processing applications for debt write-offs, under a scheme seen as an attempt to revive the government’s fortunes in an election year.
Eligible people with overdue liabilities totaling up to 35,000 kuna (5,100 dollars) have until May to send their applications to FINA.
The 2.1-billion-kuna scheme only applies to the poorest – those without properties or savings and with a monthly income of less than 1,250 kuna per household member.
Both private and public creditors are taking part in the scheme, the Croatian government said on its website. The programme was endorsed by telecommunication operators, big cities, banks and public enterprises.
“They all demonstrated social responsibility in relation to citizens who found themselves in a difficult situation to which they in many cases did not contribute,” it said. The government is now seeking to expand the programme to other agents, including local municipalities.
With the economy struggling and unemployment at nearly 20 per cent, FINA says some 319,000 Croats had their account frozen over outstanding debts last year. In all, some 30 billion kuna worth of debts were not paid off.
Social Democratic Prime Minister Zoran Milanovic, who has seen his popularity tumble to an all-time low ahead of parliamentary polls due later this year, has described the debt-relief initiative as “a new start” for the country’s poorest.
Croatia joined the European Union in 2013, but has been unable to turn its unreformed economy around and has remained in recession for five consecutive years.
GNA
