Continuous Contact Between Clients and Hypo Bank Necessary Until a Final Solution is Found

On February 5, 2015, the Standing Committee for Financial Stability received a joint statement from Hypo-Alpe-Adria-Bank from Mostar and Banja Luka in response to the recommendation of the Standing Committee for Financial Stability from January 27, 2015, which concerned the issue of resolving loan repayment problems in Swiss francs, reports the Patria news agency.

At a telephone session held today, February 5, 2015, the Standing Committee for Financial Stability discussed the offer submitted by Hypo-Alpe-Adria-Bank.

Bearing in mind that these are contractual obligations arising from agreements between the bank and the client, and that the Standing Committee for Financial Stability cannot impose legal requirements on either party in the contractual relationship between the bank and the client, it is recommended to continue ongoing communication between the bank and the client until an acceptable solution for the contracting parties is found.

The Standing Committee for Financial Stability assesses that a partnership relationship 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 financial results.

The Standing Committee for Financial Stability expects to receive information from Hypo-Alpe-Adria-Bank within two months on the number of received and positively resolved requests for the implementation of solutions in the repayment of clients who are users of loans in Swiss francs, the Central Bank of Bosnia and Herzegovina announced.