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Croatian gov't mulling law to convert CHF-pegged loans to euro

ZAGREB, Aug 25 (Hina) - The Croatian government is preparing draft legislation on converting the Swiss franc-pegged loans to the euro-indexed ones, according to unofficial reports published by commercial broadcasters on Monday.
The proposal, which is expected to be put forward at some of the next government meetings, is being prepared by Finance Minister Boris Lalovac, according to those reports. That law should replace the current temporary solution which fixed the CHF-kuna exchange rate at 6.39 kuna for 12 months. That solution expires in late January 2016.

The loans in question would be converted to the euro at a rate valid on the day of the loan contract conclusion. The burden of the conversion should be borne by commercial lenders, according to unofficial sources.

An estimated 55,000 households are currently servicing the CHF-pegged loans in Croatia.

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