Initiating criminal proceedings may trigger ‘fear’, but the State Attorney’s Office will not prosecute a debtor who does not pay their loan if they prove that they never intended to deceive anyone from the beginning. Which fraudster will admit that they planned the fraud?
The fate of loan guarantors in this region has been very uncertain for some time, and the crisis is once again bringing them to the brink of despair. Daily, pages and pages of the daily press could be filled with the sad fates of guarantors who are facing loan repayments from debtors who were once their friends, acquaintances, family members, or bosses. The relevance of the problem is evidenced by the recent public advice from the World Bank to banks in our country to abandon the practice of not making an effort to collect debts from debtors when they have a quality guarantor. What, however, can a guarantor do when they find themselves in a situation of paying someone else’s debt? Can they do anything at all?
More in the text of Lider’s advisor Prof. Dr. Hrvoje Kačer in the new issue of the business weekly Lider.
