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A fifth of households cannot pay back loans and have enough to live on

Croatian Times

Eighteen percent of indebted households in Croatia cannot pay back their loans and still have the minimum needed for survival, according to the the Croatian National Bank (HNB).

The three main perils for borderline debtors are higher interest rates, currency depreciation and unemployment. Since no major changes in the first two factors are expected in the near future, an increase in lay-offs poses the main risk.

The number of vulnerable households has risen from 15.9 percent in 2008, and, if the crisis continues and unemployment worsens, the number could reach anywhere from 22 to 25 per cent.

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