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Croatian Parliament Unanimously Votes to Fix Swiss Franc for 1 Year

swiss-franA special sitting on Friday has seen the Croatian parliament vote unanimously in favour of amending a consumer credit law which will see the Swiss Franc fixed for the next 12 months…

85 MP’s voted in favour of the law change, whilst only 1 MP voted against. The Swiss franc will now be fixed for 12 months at a rate of 1 CHF = 6.39 HRK.

The amendment will apply to all those with mortgage loans in the Swiss franc, as well as anybody who has a loan in the Swiss franc worth more than 1 million kuna (113,000 euros).

To recap, Switzerland recently removed the cap on its Swiss Franc to the euro which saw the currency rise 17% against the Croatian kuna in 24 hours. The rise spelt bad news for the large number of homeowners with mortgage loans in the Swiss franc. Around 8% (60,000) of Croatian mortgage loans are in Swiss francs. One Swiss franc is currently 7.66 kuna.

Swiss franc loans were for a long time the best credit deal around and a large number of Croatians, Poles and Hungarians in particular took advantage of it in the early 2000s when the franc was weak and interest rates were lower than those for loans in local currencies.

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