Matijasevic told a press conference in Osijek on Wednesday that despite the government's plan to counter illiquidity, the outstanding liabilities of companies and small enterprisers totalled HRK 31.3 billion at the end of July, rising by 37 percent on the year.

According to the trade union leader, about 30,500 insolvent entities owe HRK 25.5 billion with liabilities in arrears.

All of this creates conditions for launching bankruptcy proceedings which the HUS chief believes may additionally aggravate unemployment.

He said that the economic sector had lost 65,000 jobs with a simultaneous increase of employees in the public sector.