Tax Considerations for Non-Performing Loan Resolution in Croatia
The Croatian banking sector is still burdened with a high portion of Non-Performing Loans, which must be resolved in order to support normalized credit conditions in the economy. With Non-Performing Loans (NPL) amounting to 16.6 of total loans at t...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/804181479479037150/Tax-considerations-for-Non-Performing-Loan-resolution-in-Croatia http://hdl.handle.net/10986/25761 |
| Summary: | The Croatian banking sector is still
burdened with a high portion of Non-Performing Loans, which
must be resolved in order to support normalized credit
conditions in the economy. With Non-Performing Loans (NPL)
amounting to 16.6 of total loans at the end of 2015 and as
much as 30 of loans in the corporate sector, Croatia has one
of the highest levels of NPLs across the European Union.
High stock of NPLs poses a significant strain on the
Croatian financial system and resolving NPLs is essential to
strengthen the financial system and restore normalized
lending. From the perspective of borrowers, resolving
unsustainable debt levels and restoring credit is equally
vital to business recovery and economic growth. The European
Commission Country Report Croatia 2016 highlights that the
high stock of NPLs remains a challenge for the banking
sector and the Council opinion on the 2016 National Reform
Programme of Croatia recommends that the government
facilitate the resolution of NPLs, and in particular by
improving the tax treatment of the resolution of
non-performing loans. |
|---|