Politics

Government Says All of Earthquake Relief Donations to be Spent on Reconstruction, Housing

By 25 February 2021
Government Says All of Earthquake Relief Donations to be Spent on Reconstruction, Housing
Copyright Marc Rowlands

ZAGREB, 25 February, 2021 - All of the HRK 101.5 million collected in donations for earthquake relief will be spent on housing reconstruction - the demolition of damaged houses and construction of new ones - in the earthquake-struck areas, the government said on Thursday.

The government adopted a decision on the distribution of donations to the state budget for earthquake relief, allocating that money to a special account of the Central State Office for Reconstruction and Housing.

Prime Minister Andrej Plenković denied media reports that only 40% of the donations would be used to rebuild quake-damaged houses and that the rest would be allocated to four ministries.

"I wish to deny media reports that appeared today. The distribution of the funds will be completely different from what has been reported," said Plenković, adding that the donations collected would be "spent on reconstruction in the earthquake-struck areas."

"There must be no unclarities about that," said Plenković.

Finance Minister Zdravko Marić said that by 24 February a total of HRK 101.5 million had been collected in donations and that the money would be allocated to the Central State Office for Reconstruction and Housing. It will be used to remove damaged houses and build new ones as well as perform other work within the remit of that office, he said.

Any donations that are received subsequently will also be allocated on a monthly basis to the central reconstruction office, he said, adding that the office is obliged to report to the government each month as to what the money has been spent on as well as publish this information on its web site.

"We have been informing the public in the most transparent way of donations received and will continue to do so," said Marić.

He said that an assessment of the damage caused by the 29 December earthquake in Sisak-Moslavina County is being made and that it was likely to exceed by far that for the Zagreb earthquake.

The main source of financing for the reconstruction process will be the state budget, that is, taxpayers' money, and there is also money from the EU Solidarity Fund and international financial institutions, he said.

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