“Croatian
government have gotten creditors on board a plan to erase the debts
of some 60,000 poorest citizens. The 'fresh start' scheme targets
less than 1 percent of the entire debt, but is hoped to boost the
economy in the long-term.”
“The
unorthodox measure was voted for by the government on January 15 and
comes into force on Monday. To be eligible to participate debtors
must have no savings or property, have a debt no greater than about
$5,100 and live on welfare or an income of no higher than $138 per
month.”
“Some
$31 million worth of bad debts are expected to be written off by
creditors who have signed up to the government’s scheme. Those
include several banks, telecommunication companies, major utilities,
several major cities and municipalities as well as the government’s
own tax agency. None will be refunded for their losses. The program
would return access to bank accounts to about 20 percent of the
317,000 Croatians, whose accounts were frozen in July last year due
to debts. The entire population of the small Mediterranean nation is
4.4 million.”
“In
addition to debt erasing Milanovic’s government is considering
other measures to help its debt-stricken citizens amid the economic
recession, which has been plaguing the country for six years in a
row. Zagreb wants to follow the example of Bulgaria and fix a
favorable exchange rate for mortgage loans taken in Swiss francs.”
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