For pronatality measures, HRK 1.9 billion was set aside

The Croatian government on Thursday endorsed draft amendments to the legislation on child's allowance whereby the scope of recipients eligible for this benefit will be broadened to include an additional 94,000 families, or 154,000 more children.

The amendments envisage changes to the means test so that all families whose monthly income is below 2,328 kuna per member of the household become eligible for the government's assistance in the form of a child allowance, Family, Youth and Demography Minister Nada Murganic said at the government's meeting.

The draft amendments also envisage a wider scope of recipients eligible for an allowance of 500 kuna paid for the third and every next child.

A call for applications for subsidised mortgages will be advertised this September and next two Septembers and will amount to 30% or 51% of monthly installments depending on the development index of towns or municipalities, says a bill on subsidised housing loans the government put to parliament on Thursday.

The proposed amendments envisage the publication of calls in September for the next three years, Construction and Physical Planning Minister Predrag Stromar underscored.

The period for enjoying subsidies for this housing loans scheme is also being extended from four to five years and that period can be additionally extended by two years for every child born or adopted for the duration of the subsidies.

"Last year in September there was an exceptional number of applications by citizens - 2,399 applications were submitted for subsidised housing loans . That is at the same time a demographic measure - in the past six or seven months since subsidies were introduced, more than 200 children have been born (to the families covered by this scheme)," Stromar said.

The proposed amendments will extend the period of subsidies for cases where a member of that household has a determined disability of more than 50%.

The precise amount of the subsidy will depend on the development index so that families in less developed areas can have an opportunity to solve their housing problems. Subsidies up to 51% of installments or annuities will be approved for housing purchased in less developed areas whereas subsidies for housing in more developed areas will amount to 30%.

Interest rates on mortgages cannot be more than 3.75% and Stromar believes that when a tender for the selection of banks is advertised, interest rates could be even lower.

Last year some banks offered loans with interest rates under three percent, he added.

The minister believes that the real interest rate would be between two and three percent and once Croatia joins the European monetary union they could be even cheaper.

Stromar recalled that since the Law on Subsidised Mortgages was adopted, to date 2,320 mortgages had been approved and all those who applied for subsidies, if they had submitted all the relevant documents, were approved.

HRK 42 million invested for this measure this year 

The government is resolute that this model is one of the essential demographic measures. There will be enough money for all those who apply and provide the necessary documents, Stromar said and added that funding for this purpose would be allocated from the budget.

He said that he expected the amendments to be adopted in parliament by July 13 so that a selection process of banks could be conducted during the summer, enabling the tender for applications for subsidies to be advertised in September.

The government on Thursday endorsed a package of judicial bills that were outlined by Justice Minister Drazen Bosnjakovic, who considers that the most important thing is the merger of municipal and magistrate courts and scaling down their number from 46 to 34 which would result in new personnel potential, efficiency and better access for citizens to the courts.

Bosnjakovic explained that a new network or courts would enable better access for citizens because it will strengthen their permanent services outside the courts' headquarters which will mean citizens will have to travel less to resolve their disputes.

He announced a more transparent selection process for judges, introducing the post of a court prinipal who would assist court presidents with administration tasks. He also announced the establishment of a high criminal court that would decide on appeals to county court rulings and stricter criteria to appoint judges to high courts.

"We want the State Judicial Council and the State Prosecutorial Council and the appointment of officials to work faster and better, deadlines are being shortened, we want more objective criteria and decisions which won't cause doubts in public and (cause) work of the Constitutional Court. We also want to strengthen courts by establishing a department for the EU acquis communautaire, the practice of the European Court of Human Rights and European Union courts," Bosnjakovic said.

He said citizens could expect faster proceedings and better judges, appointed transparently, objectively and swiftly, which would mean faster and better justice.

Text: Hina

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