Prague - Debts that cannot be settled even after long years of hard work are the fundamental reason why released prisoners turn into recidivists.

Czech Probation and Mediation Service introduced a project that is supposed to help debtors as well as their creditors. A special fund will be established that will pay a part of the sum to creditors, and debtors will be paying the rest of the sum to the fund, instead of to creditors.

Trial operation of the fund will be covered by Swiss foundation VEBO. In Switzerland, there is a similar system functioning for more than three decades and no more state donations are needed. Initially, the project was covered by revenues of state lottery.

The Czech Republic has one of the highest numbers of recidivists in Europe. As much as 60 percent of prisoners are being jailed for the second time and more than 80 percent had served an alternative sentence before.

One quarter return

Creditors willing to participate in the project will receive back on average one quarter of their loan, withdrawing from the rest.

Justice Minister Jiří Pospíšil is adamant creditors will be interested in participating in this scheme.

"On average, the state recovers 8.7 percent [of debts]," Pospíšil said, adding that 25 percent could be a very interesting offer to creditors.

Help for petty offenders

Only those released prisoners that are legally employed, are under surveillance by probation service and their debt does not overpass CZK 450,000, will be allowed to participate in the program.

"This scheme is not to help economic crime perpetrators that embezzled millions of crowns," Pospíšil said.

For example, a man who has CZK 250,000 debt and who is earning CZK 8,000 after his release from prison would be offered to pay CZK 2,542 every month for three years. In this way, he would pay more than CZK 91,000, which means that the creditors will be paid roughly 37 percent of their debt.

The Probation and Mediation Service will test this system initially in Central and Northern Bohemia. After one year it will be evaluated whether the state will take part in it immediately, or whether some laws need to be amended.