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More Favorable Loan Restructuring Conditions

Users of loans approved by the Ministry of Agriculture, Fisheries and Rural Development will be able to reach an agreement or restructure their loans under more favorable conditions, the Ministry announced, based on the decision of the Government of the Republic of Croatia from September 9 of this year.

If users agree to repay the debt in a lump sum, they are entitled to a complete waiver of late interest and a 60% discount on the remaining debt, or a complete waiver of late interest and a 40% discount on the remaining debt if the loan user accepts a restructuring that can last up to 10 years with the possibility of a one-year grace period. This enables, it is further stated in the announcement, further financial restructuring of agricultural holdings and the establishment of long-term financial balance of economic entities, their stability and success in business, as well as the creation of preconditions for further investments and enhanced development of agricultural holdings. This Decision covers the remaining matured but unpaid loan debt of about 2,500 loan parties, which today amounts to approximately 350 million kuna, with a significant share of late interest in the total claims against loan users.

The total loan disbursement of this Ministry, from the period of financing the development and reconstruction of agriculture from 1991 to 2006, amounted to about 850 million kuna, or about 16,540 loan parties. The realization of favorable conditions from this decision is possible by submitting a request to the commercial bank that performs mandate tasks on behalf of and for the account of the Ministry, and the loan debtor in the request can choose the terms of the agreement, the length of the restructuring, and the repayment dynamics. Requests can also be submitted by debtors whose loans have been canceled or who have been sued due to irregular repayment, provided they accept the new loan conditions, settle court costs, and renew the collateral for loan repayment. (E.F.)