Radio Sandwell Miscellanea

Croatia cancels debt for thousands of its poorest citizens

2015-02-07 16:23:59

Croatian Debt

Some of Croatia's poorest citizens will be offered a 'fresh start' on Monday when the eastern European country's government cancels their debt in an attempt to kickstart the economy.

The large and unprecedented measure was endorsed by Croatia's left-wing government on January 15. Under the measure, citizens earning no more than 1,250 kuna ($184) a month, rent their property and are unable to pay off their debts will have liabilities worth up to 35,000 kuna ($5,146) wiped off. Power companies, banks, loan companies and telecom operators are included in the scheme.

Prime Minister Zoran Milanovic boasted that no previous government had taken such a measure. "We are doing all we can to make people's lives easier in this protracted and strenuous crisis and give them a chance for a fresh start," Milanovic said in a press conference last month.

Officials have stated that some 60,000 citizens will be covered by the plan, with the former-Yugoslav nation having an entire population of 4.4 million. An estimate from news agency Reuters said that the program could cost creditors as much as 2.1 billion kuna ($309 million).

The idea is to kick start the economy again and get consumers spending with their bank accounts unfrozen. Croatia - which is part of the European Union but not the euro zone - has been in a crippling recession for the last seven years.

Source: nbcnews.com

Share this story

Related Stories

Miscellanea around the web

SEA MONSTER MYSTERY: Beast washes up on British beach leaving experts BAFFLED

Life on Mars: 'Fossilised skull' found on Red Planet evidence of ancient alien UFOs?

Cat named Pawfficer Donut to serve with police

End of the world: Christians believe THESE are the signs of the apocalypse

'Hello kitties' turns to 'beware bobcats' in Texas

Dr Dre loses name battle with gynaecologist Dr Drai

Donald Trump's hotel in Scotland bans Irn-Bru

Zoo in trouble after taking bear out for ice cream

Sharks really like jazz music, scientists say

Life after death? Woman ‘meets angel’ in shock glimpse of the afterlife

Image Slider