Parliament amends laws to enable CHF loan conversion

Zagreb - The Croatian parliament on Friday unanimously adopted amendments to the Consumer Credit Act and the Credit Institutions Act based on which loans denominated in Swiss francs would be converted into euros.

Under the amended laws, the initial principal of a CHF-denominated loan will be converted into euros according to the exchange rate applicable on the day of loan disbursement, while the initial interest rate in Swiss francs will be replaced by the interest rate applicable to euro loans. A new loan repayment plan will be determined based on this calculation. 

Banks will have 45 days to deliver the conversion calculation to their clients by registered mail, after which the clients will have 30 days to decide whether they will accept the proposal. Loan holders who refuse the conversion plan will continue to repay their loans according to the initially agreed terms. Until February 2016, they will remain subject to the fixed exchange rate of 6.39 kuna for one franc and the fixed interest rate of 3.23%.

Parliament also amended the Family Act, after the Constitutional Court suspended it last year. The Constitutional Court ordered the suspension of the law after receiving 18 applications for assessment of its constitutionality in which civil society groups and individuals challenged nearly the entire text of the law. The amended Family Act was carried by a vote of 84 in favour, 22 against and eight abstentions. (Hina)

Autor: Hina