Croatian government approves anti-recession package

Description:

The Croatian government approved an anti-recession package at the ministers' weekly meeting on 26.02.2009..
The package includes some measures earlier proposed by the Economic Institute and also some measures that had not previously been mentioned.
The package includes a number of measures: an amended budget in the second part of March, more support for the Croatian Bank for Reconstruction and Development (HBOR), lower taxes to boost the economy, more support for tourism and the housing market and reduction of the deadline for payments by public companies to 60 days to help ensure companies' solvency.
Finance Minister Ivan Suker said the government would subsidize interest rates for the purchase of a first flat. At the same time, he asked banks to reduce interest on home loans and construction companies to reduce the prices of flats.
According to Suker, there were 13,000 unsold flats on the market.
Prime Minister Ivo Sanader added the government would follow a pro-active and coherent economic policy.
Sanader reiterated it was time for solidarity and responsibility among Croatians.