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1

Personal Over-indebtedness in Croatia and Measures for its Reduction

100%
Bejaković P.
Zagreb International Review of Economics and Business
|
2016
|
vol. 19
|
issue 1
45-58
EN
The robust growth in household debt in pre-crisis period coincided with real growth in household disposable income, large economic expansion and a considerable fall in banks’ interest rates. However, household debt indicators deteriorated markedly as total household debt grew faster than income. This raised concerns about potential implications of an additional increase in the debt burden on financial stability. An analysis of household debt based exclusively on data aggregated at the sector level is not a best financial vulnerability indicator as it fails to provide insight into the distribution of debt and credit risk by individual household groups. The text explains the problems with personal over-indebtedness in Croatia and measures for their reduction.
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