Tax Considerations for Non-Performing Loan Resolution in Croatia

World Bank Group

World Bank, Washington, DC

关键词: non-performing loans;    taxes;    banking;    non-bank financial;    collection;   

RP-ID  :  110338

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The Croatian banking sector is stillburdened with a high portion of Non-Performing Loans, whichmust be resolved in order to support normalized creditconditions in the economy. With Non-Performing Loans (NPL)amounting to 16.6 of total loans at the end of 2015 and asmuch as 30 of loans in the corporate sector, Croatia has oneof the highest levels of NPLs across the European Union.High stock of NPLs poses a significant strain on theCroatian financial system and resolving NPLs is essential tostrengthen the financial system and restore normalizedlending. From the perspective of borrowers, resolvingunsustainable debt levels and restoring credit is equallyvital to business recovery and economic growth. The EuropeanCommission Country Report Croatia 2016 highlights that thehigh stock of NPLs remains a challenge for the bankingsector and the Council opinion on the 2016 National ReformProgramme of Croatia recommends that the governmentfacilitate the resolution of NPLs, and in particular byimproving the tax treatment of the resolution ofnon-performing loans.