National Bank Warns of Macroeconomic Instability over Swiss Franc-Loan Plan
On 10 September, the government sent amendments to the Consumer Credit Act and the Credit Institutions Act to the Sabor urgent procedure.
The amendments are aimed at solving the issues of citizens indebted in Swiss francs (CHF). The government essentially proposed the 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.
Such loan conversion will be voluntary for those consumers that are still paying off their loans, while those who have already repaid their CHF-pegged debts will not be entitled to the conversion. Small businesses and family-run farms burdened with CHF loans are also entitled to the conversion option…