Croatia moves to curb consumer debt and issues €1.25bn bond

The Croatian government announced a new consumer‑credit law aimed at halting the rapid rise in household indebtedness, which now totals just over €3.05 billion for about 197,000 citizens. The legislation merges existing credit and mortgage credit statutes, extends regulation to short‑term loans and credit‑card advances, mandates clear pre‑contract information, and introduces a “right to be forgotten” for individuals who have overcome cancer. The central bank (HNB) will tighten credit‑worthiness assessments, while the Financial Agency (FINA) will provide free counseling for distressed borrowers.

Separately, Croatia placed a five‑year sovereign bond worth €1.25 billion on the domestic market. The bond carries a 3 % annual coupon and a 3.08 % yield to maturity, attracting about €1.5 billion of institutional demand. Proceeds are earmarked for refinancing existing obligations and financing budget expenditures. Major banks acted as agents for the issuance, underscoring Croatia’s continued appeal to investors.