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Debt Forgiveness Agreement Signed

Just days after parliament enacted legislation on debt forgiveness for the poorest, representatives of the state, municipalities, public utilities and banks signed an agreement Monday pledging to cooperate in the debt relief effort.

Prime Minister Miro Cerar and Anja Kopač Mrak, the minister of labour, family, social affairs and equal ppportunities, said this was but the first step in helping the poor get rid of debt.


The state as well as many companies are already writing off debt, but thelaw and the agreement will streamline the process, minister Kopač Mrak said. The legislation does not tackle all problems, but Slovenia the government is pleased with what it has achieved in the given circumstances, she said.


Under the law, only debt incurred before 2014 will be eligible for write-off, while the window for signing relief agreements will be six months starting on 1 August. Debtors who received welfare payments for the poorest in the first half of this year qualify for the debt relief.


Companies typically have to pay tax bills on write-offs, but under the bill the tax liability will be waived, which the government hopes will get many companies on board of what is a voluntary scheme. Municipalities are getting involved as the founders of schools and kindergartens.