Banks Plan Constitutional Lawsuit against Croatia over CHF Loan Conversion

Zoran Bohacek, Managing Director, Croatian Banking Association (HUB)LPJ Issue 151, 5 October 2015

The deadline for applying legal regulations on the conversion of all loans in Swiss Francs, totalling 24 billion Kuna (€3.1 billion), into euros began on 1 October. Commercial banks now have 45 days to send their calculations to loan holders, while the loan holders will have 30 days to decide whether they will accept the respective proposals.

In September, the Sabor adopted amendments to the Consumer Credit Act and the Credit Institutions Act, aimed at helping tens of thousands of Croatian citizens cope with rising payments of Swiss franc (CHF) – pegged loans. The legislative changes essentially introduced a forced conversion of all CHF-pegged loans to euro-pegged ones, with a partial write-off of the loan principal repayment and at the exchange and interest rate valid on the date of loan issuance (see LPJ 148)…

See more