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Trade union federation raises its voice against exchange clause in contracts

ZAGREB, Jan 20 (Hina) - The HUS trade union federation has filed a request with the Croatian Constitutional Court to examine whether the article of the Civil Obligations Act regulating the introduction of the exchange clause is in accordance with the Constitution, HUS said in a statement on Thursday.

The trade union federation believes that the exchange clause article undermines the constitutional provision about the country's sovereignty as well as legislation on equality before the law.

Article 22 of the Civil Obligations Act reads that the value of the contractual obligation in the currency of the Republic of Croatia shall be calculated on the basis of the value of gold or the exchange rate of the currency of the Republic of Croatia against a foreign currency.

HUS warns that the application of Article 22 is most widespread in banking operations where exchange clauses have become "an unavoidable element" of general terms of contracts for granting loans to individuals and companies.

HUS believes that this practice leads to the inequality of parties to contracts.

The trade union stresses that the Croatian national currency kuna is the only means of payment in the country, and as such it represents a component of state sovereignty.

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