Mortgage Defaults 7 Times Higher

The number of people defaulting on their mortgage payments to the bank in Croatia has risen more than 7 times since 2008, reports daily Novi list…

According to data from the Croatian National Bank (HNB), at the end of 2008, when the global economic crisis began to hit, there was 313.6 million kuna (41 million euros) outstanding unpaid mortgage repayments. Six years later and that figure has grown to 2.4 billion kuna (320 million euros). The figure relates to regular monthly repayments that were missed.

HNB data shows that at the end of 2014 there was 8.5 billion kuna (1.1 billion euros) total credit which was still outstanding with the banks, six times more than in 2008. Since 2008 the amount of credit taken out to purchase cars had decreased six times. Up there with mortgage loans, was the amount of cash loans with the bank still outstanding. At the end of 2014 there was 2.34 billion kuna (318 million euros) outstanding.