‘Colony of Blocked’ in July Counted 323 Thousand Citizens and 26.6 Thousand Companies

At the end of July this year, 26,674 business entities had blocked accounts with 15.47 billion kuna in unpaid payment obligations, while 323,120 citizens were also blocked with debts amounting to 42.22 billion kuna, according to the latest data from the Financial Agency (Fina).

The number of citizens with blocked accounts decreased both on a monthly and annual basis, but at the same time, there is an increase in the amount of their debt.

Thus, at the end of July, 1,889 citizens had blocked accounts, which is 0.6 percent less than at the end of June, but their debts simultaneously increased by 40 million kuna or by 0.1 percent.

On an annual basis, compared to July of last year, the number of citizens with blocked accounts is lower by 5,237 or by 1.6 percent, but the amount of their debts increased by 1.96 billion kuna or by 4.9 percent.

In the case of companies, or business entities, there is a recorded decrease in the number of blocked accounts, as well as in the amount of their total unpaid payment obligations both on a monthly and annual basis.

Compared to June, at the end of July, there were 0.5 percent fewer blocked companies, and their total unpaid debts decreased by 1.4 percent.

On an annual basis, compared to July 2016, there were 4,781 fewer blocked business entities in the seventh month of this year, or 15.2 percent less, and the amount of their unpaid obligations decreased by 3.7 billion kuna, or by 19.5 percent.

Long-term blockages continue to dominate

Fina’s data for the seventh month of this year shows that among the blocked business entities, those in long-term blockage, longer than 360 days, continue to dominate.

At the end of July, there were 18,137 such companies, which accounts for 68 percent of the total number of companies with blocked accounts. These business entities account for 80.8 percent of the total debt, or more than 12.5 billion kuna.

The number of insolvent business entities in blockage longer than 360 days increased by 0.3 percent compared to June, but the amount of their unpaid payment obligations decreased by 0.8 percent.

Fina’s data also shows that more than 60 percent of business entities, or 16,562, refer to business entities without employees, and the debts of such companies make up 64.9 percent of the total amount of unpaid payment obligations or more than 10 billion kuna.

Of the total 26,674 blocked business entities, just over a third (37.3 percent) are legal entities, and they account for the largest part, 62.3 percent of the total amount of unpaid payment obligations. At the end of July, there were 9,944 legal entities in blockage, with 11,230 employees and debts of 9.6 billion kuna.

At the same time, the accounts of 16,730 individuals, or craftsmen, were also blocked, with 9,100 employees, and their unpaid obligations amounted to 5.8 billion kuna.