Croatia: Foreign Exchange Loan Conversion Costs € 50m

Business › n.a. ♦ Published: September 21, 2013; 18:05 ♦ (Vindobona)

In order to help over-indebted Croat households, the government plans to shift the burden to the banking sector.

Croatia: Foreign Exchange Loan Conversion Costs € 50m / Picture: © Vindobona.org

In the years from 2000 to 2008 about 100,000 borrowers took out a foreign currency loan. Now, about 75,000 borrowers are repaying foreign currency loans. Most of them took out Swiss franc loans and euro loans.

Since 2008, the Croat kuna fell against the Swiss franc and the euro. Interest payments went up suddenly. As a result, a large number of Croat borrowers got under pressure.…

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ISIN
AT0000652011, AT0000606306
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