Exchange rate rises: Citizens with loans in Swiss francs will face significant problems

The abolition of the temporary measure of the Swiss National Bank, which related to limiting the exchange rate of the franc against the euro, has led to a sudden and high increase in the exchange rate in recent days, and consequently in relation to the convertible mark, it was announced from the Banking Agency of FBiH, Patria reports.

- The aforementioned increase in the exchange rate of the Swiss franc will have significant negative effects on citizens and business entities in Bosnia and Herzegovina who have loans with a currency clause in Swiss francs. The amount of loans with a currency clause in Swiss francs, which were placed by banks in the Federation of BiH as of 30.11.2014, amounts to 150 million KM and refers to one bank with its seat in FBiH -  it was announced from the Banking Agency of FBiH.

Representatives of the Banking Agency of FBiH have contacted representatives of the bank, with the aim of finding modalities that would reduce the negative impact caused by the sudden change in the Swiss franc and that would ease the situation for the population that has loans with a currency clause in Swiss francs. 

- One of the modalities being considered is the possibility that the bank offers clients the conversion of their loans with a currency clause in Swiss francs into loans in convertible marks, or into loans with a currency clause in euros, at the exchange rate that was valid for the Swiss franc on the day of the abolition of the temporary measures of the Swiss National Bank -  it is stated in the announcement of the Agency.

Also, representatives of the Banking Agency of FBiH will consider with representatives of the bank other options and modalities, with the aim of mitigating the aforementioned negative effects.