PM Milanovic: Gov't to propose one year CHF freeze at HRK 6.39

Prime Minister Zoran Milanovic on Monday told a press conference that the government would recommend to parliament amendments to the law on consumer loans which would determine the exchange rate for the Swiss franc to be set at HRK 6.39 for a period of one year at the expense of financial institutions.

"Over the next year we can sit down to talk about converting loans pegged to the franc into kuna value but that will require the consent of the Croatian National Bank (HNB) because that is not exclusively in the government's authority," Milanovic said.

The prime minister was speaking after a meeting of representatives of the Finance Ministry, the HNB and commercial banks.

According to HNB figures, the total value of loans pegged to the Swiss franc at the end of September 2014 amounted to HRK 23.7 billion and more than 92 per cent of these loans were taken by citizens, primarily as housing loans.

According to the Franak civil society organisation, representing people with loans pegged to the Swiss franc, there are around 60,000 loans pegged to this currency and the latest jump could impact around 200,000 to 300,000 citizens in the country.

(Hina) 

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