ZAGREB, 2 Sept 2021 - The Croatian government on Thursday agreed on amendments to the Consumer Protection Act and sent them to parliament for consideration.

Under the proposal, consumers will be able to address their comments and objections to retailers via chat, and retailers will be required to display both reduced prices during discount sales and the lowest price of the same product that applied 30 days before the discount sale.

The proposal also extended the list of circumstances constituting unfair commercial practices, including dual quality of products.

Bill ratifying guarantee agreement with IBRD

Also sent to parliament was the bill ratifying a guarantee agreement with the International Bank for Reconstruction and Development to provide Croatian companies with liquidity. The agreement was signed on 7 June this year, along with a loan agreement between the International Bank for Reconstruction and Development and the Croatian Bank for Reconstruction and Development for this project.

The purpose of the €200 million loans is to provide funding for private companies, for permanent working capital and financial restructuring of exporters, for companies with limited access to financial services, and for underdeveloped regions. The repayment period is 15 years, including a 4.5-year grace period, and the interest rate is the 6-month Euribor plus a variable interest margin.

Amendments to Micro and Small Loans for Rural Development scheme

The government also adopted amendments to the Micro and Small Loans for Rural Development scheme, increasing the amount available for financing small loans from the present €50,000 to 100,000. The aim of the amendments is to alleviate the difficulties faced by final recipients in the agriculture, processing, and forestry sectors in accessing capital.

Small Loan for Rural Development is the most sought-after financial instrument under the Rural Development Programme, Economy Minister Tomislav Ćorić said.

From its launch in September 2018 to the end of June 2021, a total of 1,137 applications for financing had been received, of which 721 applications, worth HRK 240.6 million, had been granted, he said, adding that new applications were being received and processed on an ongoing basis.

(€1 = HRK 7.5)

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