Tax Considerations for Non-Performing Loan Resolution in Croatia

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作者：

World Bank Group

来源地址：

http://hdl.handle.net/10986/25761

关键词：

non-performing loans;  taxes;  banking;  non-bank financial;  collection;  financial regulation;  debt foregiveness;  write-offs;  tax policy;  Report;  Rapport;  Informe; 

年份：

2016

出版地：

Washington,USA

语种：

English

摘要：

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.