Home » Business » Croatian Parliament Unanimously Votes to Fix Swiss Franc for 1 Year

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.

Share on:
0 / 5 (0 votes)

Sign up to receive the Croatia Week Newsletter

Related Posts

Where to Get the Best Burek in Town?

By Iva Ralica If you are visiting the Croatian capital and you are looking for a burek fix, you will not be short on places to satisfy your craving. Zagreb is not short of bakeries, and there is probably more chance of winning the lottery, twice, than finding a bakery which does not sell burek....

[VIDEO] Imotski’s Amazing Blue & Red Lakes

The small town of Imotski, situated in the Dalmatian Hinterland on the northern side of Biokovo, is home to a number of interesting tourist attractions. Two of those are the Blue and Red Lakes. The Red Lake is a sinkhole containing a karst lake and is known for its numerous caves and remarkably high cliffs,...

[VIDEO] UberBOAT Starts on Croatian Coast

UberBOAT, an on-demand boat service, has officially kicked off its world operations in Split on the Croatian coast yesterday. UberBOAT will connect the many islands on the Dalmatian coast with the mainland and on Friday in Split, it officially had its world premiere of its services. UberBOAT offers boat rides from the city of Split...

Youngsters From Croatian Communities Abroad Volunteering in Croatia

Around 30 young people from Croatian communities around the world are currently in Croatia for the next few weeks volunteering. Youngsters from South and North America, as well as other nations from around the world, are have been volunteering in Croatia as part of ‘Eco Heritage Task Force 2017’ organised by the Croatian Heritage Foundation....