Loan users in "Swiss francs" deceived: Arrangement with the IMF will fail if the law is passed!

At the last session of the House of Peoples of the FBiH Parliament held on September 7, the discussion on the agenda item "Conversion of CHF loans to KM at the exchange rate on the day the loan was taken out" was concluded, writes the Patria news agency.

In the continuation of the session of the House of Peoples of the FBiH Parliament, which will be held on September 15, the law remains to be voted on.

- The law remains to be voted on, or we will witness another fraud and betrayal of the citizens of FBiH by the legislative and executive authorities. We absolutely do not want to believe in this second option, because it is incomprehensible to common sense that the same authorities will not treat their citizens as slaves. I am saying this because of the arrangement with the IMF – says Kemal Duraković, president of the UKK "Švicarac".

The end of the agony awaits about 6,000 citizens in FBiH. The Bosniak Club expressed support for the law that corrects the injustice towards loan users in Swiss francs, and support was expected from the Croat Club, as well as all others who supported citizens with this problem in the days and months behind us. However, the agony will not end, because the IMF also demands it.

The authorities in the Federation are clearly lying to both the citizens and the IMF itself, because these two things cannot go together.

- What can happen? Either they will first adopt the draft law, and then confirm the Letter of Intent in which it is stated that they will not adopt it, or they will adopt the Letter of Intent in which it is stated that they will not adopt that law, and then immediately after that adopt it. In any case, the point is that they are lying to both the IMF and these people to whom they promised a law that will not happen. It is also listed as a continuous performance criterion, which means that the arrangement fails if they adopt that law at any moment – says our source from the FBiH Government.

The Letter of Intent states the following:

- Our financial sector has weathered the global financial crisis and the years of weak economic growth that followed, as well as the floods in 2014, relatively well. Although the banking sector is liquid and adequately capitalized at the aggregate level, some sensitivities still persist. The shares of non-performing loans in total loans remain elevated, and the growth of new loans to the private sector is quite low. Some banks need to improve their capital positions and restructure their balance sheets more deeply to ensure long-term sustainability. In such circumstances, we continue to carefully monitor developments in the financial sector with the aim of protecting financial stability. We will not take any actions that jeopardize financial stability, including imposing an obligation to convert any foreign currency loans into domestic currency (continuous performance criterion). We are aware of the key importance of such a commitment for the success of the Extended Arrangement – it is stated in the Letter of Intent.