FinMin calls for further talks on Swiss franc loans

Finance Minister Boris Lalovac on Tuesday called on banks and the Franak association, which brings together debtors with loans pegged to the Swiss franc, to continue talks on solutions to those loans and urged banks to offer reasonable, concrete and long-term solutions.

"My proposal, but I'd like this to come from commercial banks and the Franak association to accept it, is conversion into euros. But that won't be decided by the finance minister, but by contracting parties... If commercial banks don't respond, the government, which has protected citizens on two occasions, will respond again. Don't ask me how. I still hope they will offer realistic solutions," Lalovac told reporters.

He was commenting on Franak's decision to walk out of negotiations on a solution to Swiss franc loans, its announcement of a protest and its demand that the governor of the central bank, Boris Vujcic, resign.

Lalovac said the association was entitled to protest because its members were dealing with their livelihoods, recalling that the government had changed the law on two occasions to help citizens with such housing loans.

He reiterated that converting loans into kuna would be best for all citizens, not just those pegged to the Swiss franc, but warned that Vujcic said that would be impossible because the foreign currency pressure on the kuna would be strong, adversely affecting the economy.

He again warned about two unacceptable problems with loans pegged to the Swiss franc. "The first is that you can't owe more than you did at the beginning, and the second is that you owe more than the value of your property. That's where I want banks to provide answers."

He urged banks to come up with reasonable, concrete and long-term solutions, saying "this isn't just an economic issue, but a social one too." He said the only solution was for debtors and banks to resume negotiations.

Lalovac said the government's decision to freeze the exchange rate of the Swiss franc for one year was wise, better than the six months proposed by banks.

He would not comment on Franak's demand that Vujcic resign, saying the central bank must help in this matter, regardless of who was governor or finance minister.

(Hina) ha

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