Andrej Plenković (Photo: Patrik Macek/PIXSELL) Andrej Plenković (Photo: Patrik Macek/PIXSELL)

The government's plan to resolve the chronic issue will be put into action over the weekend, with more that 150 thousand citizens having a part of ther debts written-off completely.

"To give the public an idea of what kind of a write-off this was, the total debt written-off for these 150,474 citizens amounts to more than 180 million euros," said the prime minister.

Some six thousand citizens, whose debts were exclusively towards the state have had their accounts unblocked. The prime minister called on units of local government, and private companies such as telecommunications operators and banks to do the same, noting that the government's legal framework for resolving the issue foresees tax breaks for those companies that do so.

Davor Majetić (Photo: Goran Stanzl/PIXSELL)

The president of the Croatian Employer's Association, Davor Majetić, welcomed the move, but warned against implementing only short-term solutions. He said it was important for people to have the opportunity to earn a steady income.

"We have a situation whereby people refuse to work legally and only seek jobs that are under-the-table. This is because they have frozen accounts and any legal income they receive can be seized from their accounts. Something must be done for this to stop, so that people can once again enter the legal workforce and earn a steady income. Only in this way can we prevent the situation from repeating itself," said Majetić.

Source: HRT