- Published: 12.09.2015.
Gov't to pursue conversion plan without HNB greenlight
The government is going to implement its bill on the conversion of the Swiss franc-denominated loans, no matter whether the Croatian National Bank (HNB) will or will not support it, Croatian Prime Minister Zoran Milanovic said on Saturday in his comment on a warning from the central bank that the proposed scheme for the conversion of the CHF-pegged loans into euro loans could cause serious financial and macroeconomic instability.
"It is not the (central) bank that passes laws, that is done by the government and the parliament. Even if that bank does not support the draft law, the government will nonetheless implement it," the premier said during his visit to the Adriatic town of Tisno near Sibenik.
He said that commercial banks were pursuing a "play-safe, conservative" policy, which, he added, was their role and that a warning from the HNB was not so dramatic as portrayed. The HNB makes no decisions in this case, given that they never assume responsibility for anything, and it is up to them to warn about what may happen, he said elaborating that HNB governor (Boris) Vujcic, just as all other bankers, played it safe and conservative. "This solution will not take from the banks more than they can bear, and it will help citizens and make life for them easier," he said.
He compared the HNB statement to a warning about side-effects of various medicines, which usually do not occur but warnings must be issued. The government will continue respecting the HNB's suggestions, but it will make decisions on its own, he added, reiterating that his cabinet had taken much time to consider the solution and draw it up.
On 10 September, the government forwarded to parliament the pertaining draft legislation in a bid to equate the status of holders of CHF loans with the status of euro loan holders.
(Text and foto: HINA)