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The president of the European Central Bank (ECB), Mario Draghi, has released a “opinion” on the conversion of Swiss francs loans approved by the Croatian Parliament.
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The effects of foreign exchange reserves, the ‘retroactivity’ of the law or the negative consequences for the financial system are the main arguments contained in the document.
» Download Opinion CON / 2015/32 in English
» Download Opinion CON / 2015/32 in Croatian
President of the European Central Bank (ECB), Mario Draghi, criticizes the conversion law of Swiss francs loans approved by the Parliament of Croatia. The effects on foreign currency reserves of the National Bank of Croatia, the “retroactivity” of the law and the consequences for the financial and banking system are the main arguments in the ECB’s view on the recent legislation by the Parliament in Zagreb.
At the same time, however, it is recognized that there are loans totaling the equivalent of about 3 billion euros (23 billion Kunas) in CHF Loans accounting for 9% of total loans of banking system in Croatia. Most of these loans have been granted for the purchase of the residence – about 95%. The CHF loans in Croatia represent approximately 18.6% of total housing loans and 35.6% of total mortgage loans.
The mass marketing of FX Loans in eastern and southeastern Europe affects thousands of families that are living a desperate situation. That is why some of their governments are changing their laws to try to help their citizens. However, FX Loans are considered a systemic risk to the Euro, that’s why the European Central Bank is supporting the ‘system’ against its citizens.
