CROATIAN GOVT. EXTENDS DEADLINE FOR ARRANGEMENTS WITH DEBTORS

ZAGREB, Aug 8 (Hina) - The Croatian government on Thursday adopted a decree, drawn up by the finance ministry, as to amend the Law on Payment of Due and Unpaid Taxes, Customs, Tariffs and State Collateral. The decree envisages the prolongation of the deadline in the coming 30 days for reaching agreement on the settlement of debts in arrears. #L# Under the law, the previous deadline was 21 August. Last Tuesday it was announced that more than 56,000 applications had been filed to settle debts pursuant to the Law on Payment of Due and Unpaid Taxes, Customs, Tariffs and State Collateral, and in this way the government could collect about 0.81 billion euros in debts in arrears. The law enables defaulters to regulate their obligations in a manner that is manageable for them, yet it brings revenue to the state. According to applications processed so far, it is estimated that the total amount of debts registered is 0.81 billion euros. Because of the expansiveness and demanding process, it will not be possible to enforce the law by the deadline August 21, 2002 when settlement requests are due. Therefore th Ivica Racan cabinet adopted the said decree. Most of the settlement cases should be completed by the end of this year, Finance Minister Mato Crkvenac said. He expected that about 1.14 billion kuna (156 million euros) would be collected in cash from the debtors who showed willingness to make an arrangement with the state. Additional 500 million kuna (EUR68.5 million euros) will be secured through offered real estate for covering the debts, whereas the state budget will receive further 500 million kuna through the payment of the debt which was transferred to third entities. The funds from the settlement of debts will be collected for the state budget in coming four to seven years, given that the said law envisages the payment in instalments. (hina) ms