The repayments due on every ninth loan in Croatia are unpaid or irregularly repaid, the research of Roland Berger consultants finds.

Croatian National Bank (HNB) results confirm these findings. The value of approved loans in 275 billion kunas (37 billion Euros ) in 2010, with the share of "problematic" loans at 11.2 per cent (4 billion Euros). Just a year before, that share was eight per cent.

The large increase year on year indicates that, as the Croatian economy shrank further, so did the ability of firms and citizens to fulfil their financial obligations, the daily Jutarnji List writes.

At the same time, however, the financial discipline is greater among citizens than firms. The share of "bad loans" amongst private individuals grew from 5.8 to 7.8 in 2010, while the share of bad loans held by companies jumped from 12.9 to 18 per cent. In other words, every 12th private loan was unserviced or repaid with difficulties compared to every fifth loan issued to firms.

Independent economist Zarko Primorac expects the share of bad credits to grow this year, as when it comes to the population, they are tied to unemployment