Croatian National Bank (HNB) Publishes Swiss-Loan Conversion Irregularities

hnb31 October 2016, VG Intelligence Weekly Issue 28

On 26 October, the HNB published information on the activities of banks during the Swiss (CHF)-loan conversion process. Namely, the Association Franak requested from the HNB to make such information public. On 19 October, the HNB published a press release stating that they will publish the requested information, since the High Administrative Court of Croatia adopted a ruling requesting that the information be published (see VGIW 27). This is the first case where the Court’s ruling obliges the HNB to publish bank business information, protecting the public interest. The HNB stated Addiko Bank, Raiffeisen Bank Austria (RBA), and Sberbank had violated the law during the conversion of Swiss Franc loans to Euro loans. The banks had acted against the Consumer Credit Act, imposing unlawful fixed margins on debtors in the contracts. The fines for violations vary from €10,600 to €26,600. The court proceedings against Sberbank and RBA were launched…

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