I don't know the exact scenario in Croatia or Brazil;
In general, writing off loans sets a bad precedent. People would again take loans, and will want the Govt. to bail them out. I have seen these things happen in India. There were cases people took loans and were waiting for the next election, to get their loans waived off.
I have read your comments on this thread. Seems like you found a nice way to disguise your Anti-Hindu venting by packaging it as something barely relevant to this thread.
Very nice progress made from the original topic:
Tim Cook says I'm gay -> it's difficult to be Gay in India -> It's not just Indian Muslims who are Anti-Gay, and by the way Indian (or is it Hindu?) society has lot of other faults -> Hindu rulers had fought wars, and some other thing about Hinduism is dishonest