I Call On Banks to Offer a 12-Month Interest-Free Moratorium to Workers, to the Self-Employed, Small Trades and Crafts and Micro Enterprises

The President of the Republic of Croatia Zoran Milanović called on banks to offer an interest-free loan repayment moratorium to workers, the self-employed, small trades and crafts and micro enterprises affected by the crisis caused by the COVID-19 pandemic.

“I call on banks to offer, under clearly defined criteria, an interest-free 12-month loan repayment moratorium to workers, the self-employed, small trades and crafts and to micro enterprises affected by the crisis caused by the COVID-19 pandemic. Since in normal circumstances those categories of debtors meet their obligations towards banks in a most regular manner and since the Croatian National Bank has “relaxed” supervision of the banking sector, this move would indicate that banks are actively participating in the process of maintaining economic activity. What banks are currently offering is not interest-free, is no relief for debtors, and will eventually increase their total loan liabilities and on top of everything, debtors have to pay for contract authentication. In the future, owing to measures taken to encourage economic activity and loan growth, banks will be able to offset possible losses to be incurred due to their participation in the process aimed at preserving economic activity. In that spirit, I call on banks to adjust their moratorium offers to the current situation,” President Milanović stated.