CBBiH supports finding a solution for Swiss franc loan users

 

On the occasion of the protests announced by the Swiss Franc Loan Users Association “Švicarac” for Saturday, 28 March 2015 in front of the building of the Central Bank of Bosnia and Herzegovina in Sarajevo, the CBBiH wishes to once again emphasise that it supports all efforts in finding a solution for users of loans with a currency clause in Swiss francs, reports the Patria news agency. 

The CBBiH points out, however, that it cannot take any concrete measures against banks as it has no legal authority in supervising bank operations and adopting by-laws regulating the work of banks.

The CBBiH has sought to act as a mediator in finding a solution between banks and users of loans with a currency clause in CHF, acting within its competencies and through the Standing Committee for Financial Stability. Given that the provisions of the Memorandum of Understanding establishing the Standing Committee for Financial Stability are not legally binding for its members, and that they cannot form the basis for any legal claim on behalf of any member of the Standing Committee or third parties during their practical application, the Standing Committee for Financial Stability can only issue recommendations, which has been done on several occasions regarding loans placed with a currency clause in CHF.

A loan agreement represents the will of two parties, and the issue of rights and obligations arising from the contractual relationship between the bank and the client falls under the Law on Obligations. The CBBiH assesses that a partnership between the bank and the client is necessary and that finding a solution urgently is in the interest of both clients, to limit additional costs, and banks, due to reputational risk, the growth of non-performing loans, requirements for additional provisions, and the direct impact on the financial result.

The optimal solution in this case would be an agreement between the bank and the client, while the final instance for resolving the dispute is the competent court, the Central Bank of BiH announced.