Due to the strengthening crisis in Croatia, some economists have suggested that banks, at the expense of their short-term profits, assist companies that cannot access funds for debt repayment.
There are currently no indications of more substantial credit assistance for companies, but they are ready to help citizens. Namely, from December 15 of this year, Erste&Steiermarkische Bank will offer modified lending conditions for three groups of clients – individuals on maternity leave, individuals who lose their jobs, and all users of cash, agricultural, tourism, and consumer loans with client status.
The aim of the new conditions, says Tomislav Vuić, a member of the bank’s management board, is to reduce clients’ monthly burdens and free up some money for other needs. – Through the moratorium and a 20 percent reduction in interest for pregnant women, new mothers, and individuals who lose their jobs, we are trying to mitigate the negative effects for clients, shareholders, and the community – says Vuić. The bank will implement all the mentioned changes exclusively at the client’s request.
Specifically, the bank will allow new mothers to arrange a moratorium during the loan repayment period for up to a maximum of 12 months. During this time, interest will be calculated, but reduced by 20 percent. This lower rate will also apply to those pregnant/new mothers who do not utilize the option of arranging a moratorium. The same applies to individuals who lose their employment, with the loan repayment moratorium lasting until they re-establish their employment, for a maximum of 12 months. In the event that a person finds a new job before that time, the repayment moratorium can be extended for an additional three months, so that clients can manage other expenses and obligations with their first two new salaries, the bank states. These ‘discounts’ do not apply to framework loans (overdrafts) and credit card loans.
