Government Lowers Interest in Arrears Rate

Interest in arrears rates for Croatian citizens and businesses will decrease after the government endorsed a new bill at a session on Thursday…

The new bill will mean that interest in arrears rates under contracts between companies and bodies under public law would go drop from 15% down to 10.14%, while the default rate for citizens will drop from 12% to 8.14%.

“Unfortunately Croatia is among EU nations with the highest rates of interest in arrears. This is the first step which are working on. With this we’re going to help citizens and companies, and it is up to us to come up with a total solution. It is a job that is waiting for us, the results will be seen as soon as soon as the law is passed,” said Minister of Justice Orsat Miljenić on Thursday.

Interest in arrears is interest on a loan which is due to be paid at the maturity date rather than periodically during the life of the loan. The interest leading up to the due date is payable but not yet paid.