Croatia's Poor Debt

From the Star:
"Croatia forgives debt of 60,000 poor citizens"

Imagine if the debt that keeps you up at night suddenly went poof and disappeared. That unlikely reality is what will happen for 60,000 low-income Croatians who live on less than $233 a month.

Last month, Croatian Prime Minister Zoran Milanovic announced a new program will forgive the debt of the poorest of the poor in Croatia. He said he was launching the program to prove that big government can have a heart and lend a helping hand.  “People should pay their bills, but if they find themselves in deep trouble, this measure can help,” Milanovic said on Jan. 15, according to the government of the Republic of Croatia website. Social Welfare Minister Milanka Opacic chimed in to say that this will be “a new start for some 60,000 citizens” whose accounts have been frozen for more than one year and are in dire straits. She added this measure was made in agreement with the banks, telecom operators and utility companies in at least four major cities. Opacic added that this act of forgiveness is a “one-off measure” that the government would not repeat. It is hoped the move will free up cash and help stimulate the economy with new spending. By late last year, about 322,000 Croatians had blocked bank accounts because of unpaid bills and their combined debts amounted to $5.89 billion, reported Agence France-Presse. Croatia, a country of just over four million people, has been in a recession for the last six years. Milanovic, leader of the centre-left Social Democratic party, faces an election in late 2015. Milanovic’s failure to lift Croatia out of recession led to the election of a centre-right president last month. Kolinda Grabar-Kitarovic, a former ambassador to the United States, is Croatia’s first female presidential leader.

^ I don't think this was a very smart move on Croatia's part. Not only is it in a recession and should focus on getting itself back to normal, but it also shows people that no matter what mistakes they make someone will come and bail you out. I could understand if the program focused on the disabled and the elderly, but not just 60,000 citizens that can't pay their bills. ^

 

 

http://www.thestar.com/news/world/2015/02/03/croatia-forgives-debt-of-60000-poor-citizens.html