The government have reached agreement with banks, telecommunications companies, and city councils in 4 major cities to write off debts. Those who have failed to pay debts and have had their accounts blocked for more than 12 months will qualify for the write off.
“The signing of the agreement will mean a new start for around 60,000 citizens,” Social Welfare Minister Milanka Opačić said on Thursday, adding that she would like to see other city councils around the country join the agreement.
Apart from having an account blocked for at least 12 months, only those with a monthly income in the last three months that did not exceed 2,500 kuna (340 euros), or for a single person in 1,250 kuna (170 euros), will qualify for the write off. Those who have savings or own property will not meet the criteria. Debts of up to 35,000 kuna (4,800) can be written off under the agreement.
“I think we have shown social sensitivity with this move and care for those who are most vulnerable,” said Opačić, adding that those who qualify for the write off can expect a fresh start from 1 March 2015.