Banking Sector: Difficulties in Croatia Ahead

Businessn.a. ♦ Published: November 6, 2013; 09:56 ♦ (Vindobona)

In order to protect indebted home-owners, the Croat parliament will resolve a new bank act. Like in Hungary, foreign-exchange-based mortgage should be converted at the expense of banks.

Banking Sector: Difficulties in Croatia Ahead / Picture: © Vindobona.org

About 75,000 Croat borrowers are repaying foreign currency loans. Most of them took out Swiss franc loans and euro loans. After 2008, interest payments went up suddenly.  Now, Croatia´s government plans to set fix interest rates for foreign-exchange loans. The government has submitted a proposal to the parliament, which will vote on the proposal next week.

The European Banking…