FBiH Parliament: Draft Law on Conversion of CHF Loans to KM Passed

The House of Representatives of the FBiH Parliament adopted the Draft Law on the conversion of loans with a Swiss franc (CHF) currency clause into convertible marks with 79 votes, writes the BH news agency Patria.

Loan beneficiaries in CHF have been repaying loans that are several times higher for years, and many have ended their lives out of desperation.

According to this draft law, the conversion of loans into KM is foreseen at the exchange rate on the day the loan was taken out, with an interest rate of five percent.

There are several thousand beneficiaries of such loans in BiH.

Otherwise, Hypo Alpe-Adria-Bank d.d. and Hypo Alpe-Adria-Bank a.d. Banja Luka, as announced on Monday, are aware of the problems faced by beneficiaries of loans with a CHF currency clause and, together with the new owners, have prepared a responsible, fair, and above all voluntary solution for all their clients, natural persons, who are beneficiaries of loans with a CHF currency clause.

We remind you of the solution which includes a 30% reduction in loan obligations with conversion into the domestic currency at the current exchange rate, a fixed interest rate for the new loan of 5.99%, with the Bank covering all transfer fees. The insurance for the new loan, as a rule, remains the same, and it is possible to extend the maturity period by up to 100% of the remaining loan repayment period for clients up to 75 years of age. The proposed solution also has an additional component of social responsibility, in the form of an additional relief of a 50% reduction in loan obligations, which will be provided to 25% of clients with the lowest monthly income.

At the FBiH level, i.e., in Hypo Alpe-Adria-Bank d.d., 1,120 clients have submitted requests for this type of loan repayment.