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Franc sees record drop against kuna

ZAGREB, Aug 12 (Hina) - The Swiss franc fell against the kuna on Friday for the second consecutive day, with a record high daily depreciation of 4.60% resulting in a mean exchange rate of one franc to HRK 6.755068, according to the Croatian National Bank's latest exchange rate list.

The Croatian currency rose also against the euro by 0.04% and the US dollar by 0.18%, resulting in the euro standing at HRK 7.443409 and the USD at HRK 5.226012.

Against the pound, the kuna fell by 0.70% and the pound mean exchange rate was HRK 8.511617.

Earlier on Friday, bankers held a meeting behind closed doors at the Croatian Banking Association (HUB) on measures to be taken to alleviate the situation of debtors whose housing and car loans are pegged to the Swiss currency.

According to unofficial reports carried by Croatian Television, the meeting focused on proposals to fix the franc exchange rate at six kuna, cut interest rates on existing loans by one percentage point, and impose taxes on banks for loans tied to the franc.

In addition, criteria will be defined on who may be entitled to such alleviating measures. According to unofficial reports, first-time flat buyers who have taken loans in the amount of up to 100,000 euros for a period of minimum 20 years can hope to be able to qualify for such assistance.

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