The Croatian Parliament today passed the Law on Encouraging Apartment Sales. Out of the proposed 14 amendments, 13 were accepted. The most important among them is the one by Branko Bačić, which exempts interest on loans from VAT.
The state will thus encourage the purchase of the first or larger apartment with loans ranging from 100 to 300 euros per square meter. The amount of the loan will depend on the price of the apartment, with the longest repayment period being 30 years and the longest grace period being 20 years. Loans will be approved until the end of 2011, with annual interest rates during the grace period set at two percent and five percent for the repayment period. The parliamentary majority systematically rejected opposition proposals discussed this week, including the SDP’s proposal to legally establish deadlines for state and public companies to settle their obligations. Also rejected were proposals by Dragutin Lesar (HL) to revoke the mandate of parliamentary representatives, ministers in the government, and heads of executive authorities in local and regional self-government units by force of law if a conflict of interest is proven. (H)
