In Long-Term Blockage, 76 Percent of Companies with 88 Percent of Total Debt of Blocked Companies

At the end of August, there were 45,167 blocked business entities in Croatia with 26.7 billion kuna in unpaid payment bases, and the accounts of 317,090 citizens were also blocked, with a total of 34.63 billion kuna in unpaid debts, according to the latest data from the Financial Agency (Fina).

Compared to July, the number of citizens with blocked accounts in August decreased by 3,529, or by 1.1 percent, while their total debts increased by 530 million kuna, or by 1.6 percent. Year-on-year, the number of blocked citizens in August this year is higher by 3,260 or 1.04 percent, while their total unpaid debts grew by 6.09 billion kuna, or by 21.2 percent.

Fina’s data also shows that August ended with 1,280 fewer business entities with blocked accounts compared to July, which represents a decrease of 2.8 percent, while at the same time, the amount of their unpaid obligations fell by 1.5 percent, or by 417 million kuna. Only based on the initiation of pre-bankruptcy proceedings, Fina emphasizes, the amount of reported unpaid payment bases in August this year decreased by 400.3 million kuna, and the number of debtors is lower by 70. Year-on-year, however, the number of blocked business entities at the end of August was lower by 14.8 percent or 7,845 entities, while the amount of their reported unpaid payment bases decreased by 11.7 percent, or by 3.54 billion kuna.

Among the blocked business entities in August this year, those in long-term blockage, longer than 360 days, dominated both in number and in the amount of blockage. In long-term blockage, at the end of August, there were 34,329 entities, which is a share of 76 percent of the total number of companies with blocked accounts, and these business entities account for 88.3 percent of the total debt, or 23.6 billion kuna. Furthermore, more than two-thirds of blocked business entities, or 30,730, have no employees, and the debts of such companies, amounting to 18.8 billion kuna, constitute 70.5 percent of the total amount of unpaid payment bases. 

Of the total 45,167 blocked business entities, less than half are legal entities, but they account for the largest part of the total amount of unpaid payment bases, 72.7 percent. At the end of August, there were 22,089 legal entities in blockage, which have a total of 14,540 employees, and owe about 19.4 billion kuna. At the same time, 23,078 individuals (craftsmen and freelancers) also had blocked accounts, and their unpaid obligations amounted to 7.3 billion kuna. Among blocked individuals at the end of August, there were 12,938 employed.