Naslov
Can Individual Over-indebtedness Be Prevented by Limiting Current Account Overdrafts in Croatia?

Autori
Bejaković, Predrag

Izvornik
Press release (1848-4123) 6 (2013), 46; 1-3

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, osvrt, ostalo

Ključne riječi
household indebtedness ; current account overdraft ; excessive borrowing ; Croatia

Sažetak
The minister of finance on February 19th 2013 announced the Government's intention to prevent excessive borrowing by citizens in the form of huge current account overdrafts. Household indebtedness is a serious private and social problem, especially from the perspective of social exclusion. Should over-indebted households not be able to meet their liabilities due to altered macroeconomic conditions (e.g. an interest rate hike, unemployment growth or diminishing income), this might lead to a financial crisis. The current account overdraft is a banking facility offering flexibility in the use of one’s own financial resources without unnecessary paperwork. Overdraft users do not have to strictly adjust their current account inflows and outflows in the short run and are spared from lengthy loan obtaining procedures. The problems with loans are not only the complicated, expensive and lengthy granting procedures, but also the fact that they must be repaid in regular instalments within a determined period.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA