Most banks continue to apply fixed CHF-HRK exchange rate

Most of the eight banks in Croatia which offered Swiss franc loans have extended the duration of a fixed CHF-HRK exchange rate for clients who agreed to a conversion of those loans by the end of March, while the banks which did not, said they expected the conversion to be completed soon.

A year-long freeze of the CHF-HRK exchange rate at CHF 1 for HRK 6.39 was made possible with amendments to the Consumer Credit Act which went into force on 27 January 2015, after the rate jumped about 20 percent in a day following a Swiss National Bank decision not to defend the minimum exchange rate of CHF 1.20 for one euro.

The year-long freeze ends at midnight today. Five of the eight banks that offered Swiss franc loans in Croatia have already decided that the fixed CHF-HRK exchange rate will remain, meaning that payments will not increase for clients who agreed to the conversion of their loans but have not yet been finalised.

The first to decide to continue to apply the fixed exchange rate by the end of this March was Raiffeisenbank Austria in December. Hypo bank extended the deadline too, until April 1.

Erste bank said it would enable its clients who had agreed to the conversion but had not finalised the process yet would repay their loans under the same terms as over the past year. Splitska Banka will keep the fixed CHF-HRK exchange rate for loans undergoing conversion until conversion is completed, while Sberbanka said it would keep the fixed rate until the end of March.

OTP, Privredna Banka Zagreb and Zagrebacka Banka said they would not extend the fixed CHF-HRK exchange rate.

Last update: Tue, 26/01/2016 - 16:42

More from Croatia

Presidents advocate enhancement of Azerbaijan-Croatia ties

Croatia and Azerbaijan are friendly countries and strategic partners that have developed good relations free of...

Croatia's September unemployment rate unchanged at 13.1%

The registered unemployment rate in Croatia remained unchanged in September at 13.1% after declining for seven...

Minister: Tax reform to be prepared in parallel with work on 2017 budget

Finance Minister Zdravko Maric said ahead of a meeting with Prime Minister Andrej Plenkovic on Monday that the...

Croatian inventors win 11 medals at London show

Six Croatian inventors and entrepreneurs won 11 medals at the British Invention Show (BIS), with Tomislav Bronzin of...

HBOR cuts interest rates to boost youth employment

The Croatian Bank for Reconstruction and Development (HBOR) will offer favourable loans to small and medium...