Croatia: Personal Bankruptcy – A Looming Deluge Threatening The Economy

Croatia, the War, and the Future

debt

The latest figures released by Croatia’s justice minister Orsat Miljenic say that right now in Croatia there are some 317,000 citizens who have had their bank accounts blocked, preventing them from meeting their financial obligations as well as their everyday needs. Their private/household debt totals some 28 billion Kuna. To put a perspective on that sum it translates into almost 25% of the income/revenue feature of the state budget for 2014/2015! On average, ten families are deprived of their assets — most often their housing — each day as a result of enforcement proceedings.

Croatia has a quite effective legal framework for the enforcement of debt payments, but in six years of deep economic crisis no way has yet been found or asserted to incorporate a social component into the debt collection system. The institutions of personal bankruptcy and debt rescheduling for the over-indebted still do not exist, however public…

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