"I wouldn't say that they (banks) are boycotting. There are several people from the banking sector in my Economic Advisory committee and I consulted with some bankers while I was preparing the meeting", President Josipovic told the national radio broadcaster Hrvatski Radio in response to a question why some bankers didn't attend a meeting Josipovic convened on Saturday.

Introducing the institute of personal bankruptcy, amendments to the Foreclosure Law, monitoring interest rates, writing-off debts, re-scheduling loan repayments and converting loans pegged to the Swiss franc are some of the 20 recommendations Josipovic made on Saturday to relieve the debt crisis facing citizens and that he directed to the government and parliament.

Asked to comment on a statement by the president of the Croatian Banking Association Zoran Bohacek that there was no debt crisis in Croatia and that 95% of citizens were regularly servicing their loans, President Josipovic said that he was surprised by this claim because there was currently HRK 126 billion in debts in Croatia of which almost HRK 12 billion is owed by citizens, so what is that but "debt", he said.

Josipovic underscored that his initiative was not intended to hit banks but that these were measures with a long-term outlook because it was in the banks' interest to have as few non-performing loans as possible and to show some social sensitivity and assist citizens to overcome their financial troubles, he said.

My idea is not to write-off all debts as that would be unrealistic and irresponsible but we should try and help those most vulnerable to overcome the crisis, President Josipovic said, adding that he would soon invite representatives of the banking sector for talks.

Asked what the role of the central bank was, Josipovic said the Croatian National Bank needed to be more of a regulator but without disturbing market relations.