Croatian Government Cancels Debts Of Its Poorest Citizens
Croatia's government has convinced private lenders to wipe out the debts of about 60,000 of the country's poorest citizens.By Matt Picht | February 1, 2015
Thousands of Croatia's poorest citizens are getting a second chance Monday thanks to an unprecedented government plan to wipe out up to $320 million worth of private debt.
The initiative, dubbed a "fresh start" by the Croatian government, applies to anyone without property or savings who has a monthly income of less than 1,250 kuna — that's about $183. Those citizens will have their debts worth up to $5,100 cancelled. (Video via BBC)
But the government isn't paying out creditors to forgive their debts — rather, Croatian Prime Minister Zoran Milanovic has convinced multiple cities, banks and private companies to simply absorb the losses. All told, the program is expected to affect 60,000 citizens.