ZAGREB---The government of crisis-hit EU member Croatia said Thursday that the debts of tens of thousands of its poorest citizens will be scrapped.
"This is a one-time measure due to the difficult social situation" as the country struggles to emerge from six years of recession, Social Policy Minister Milanka Opacic told reporters.
Debts of up to 35,000 kunas (4,500 euros, $5,300) will be written off.
The creditors taking the hit will be telecom operators, major banks, the country's four main cities and several public utilities firms all of which have signed up to the move after talks with the government.
The measure, to come into force in early February, will benefit some 60,000 of the country's 4.2 million residents, Opacic said.
To be eligible they should be either receiving social welfare or have a monthly income of no more than 166 euros and no savings or second home.
More than 320,000 Croatians have had their bank accounts blocked due to unpaid bills.
Croatia joined the Europan Union in 2013 but hopes that membership would boost its economy have faded.
The Adriatic nation's economy remains among the 28-nation bloc's weakest. Unemployment stands at almost 20 percent, average monthly salary is 737 euros and the government forecasts a meagre 0.5 percent growth this year.
AFP
