Swiss franc loan users rejoice: EU Court ruling will also help citizens in BiH

A great victory at the European Court in the case of loans in Swiss francs for all users, this is how the ruling of the EU Court is commented, which established that "the contested contractual clause is part of the main subject of the loan agreement, so its unfairness can be examined under the Directive only if it is not drafted clearly and intelligibly.

Namely, the obligation to repay the loan in a specific currency is an essential element of the loan agreement, given that it does not relate to an accessory (additional, supplementary) method of payment, but to the very nature of the debtor's obligation."

The ruling is clear regarding the approval of loans in foreign currency. The financial institution must provide the borrower with sufficient information, including possible risks and the likelihood of their occurrence, so that he can make a prudent and informed decision, reads the EU Court ruling, which could be of crucial importance for debtors in Swiss francs.

Kemal Duraković, president of the Švicarac association, is encouraged by this ruling and reminds that BiH is a signatory to the Stabilisation and Association Agreement, which means that BiH must adopt and accept all EU legal regulations.

Otherwise, there are hundreds of non-final rulings in BiH, mostly in favor of debtors, but unfortunately, four and a half years after the first non-final ruling, not a single ruling has yet received a final epilogue.

- That is the only question to which I have no answer. Why don't we have a final ruling? I was pleased with the EU Court ruling, because it will be able to help our judicial institutions – says Duraković.

Users of loans in Swiss francs are still turning to the Federal Parliament where they expect the adoption of a law, because it is necessary to resolve this issue legally as soon as possible, which, with the good will of the authorities, could also be achieved in the FBiH Parliament.

Members of the Commission for examining the legality of placement of loans in Swiss francs (CHF) on May 16 submitted to the parliamentary procedure a Proposal for a law on the conversion of loans with a currency clause in Swiss francs into convertible marks.

The same proposal passed unanimously in both houses of the Federation of BiH in the form of a draft law. 

The end of the agony awaits about 6,000 citizens in FBiH.

Otherwise, in Bosnia and Herzegovina, only one bank distributed such loans, Hypo Alpe Adria Bank, now Addiko bank.

In Croatia, they also celebrate the EU Court ruling and say that the doors are now opening for a complete victory in the class action lawsuit for unfair and illegal application of the CHF currency clause in loan agreements.

WHAT THE RULING SAYS

The Court of Justice of the European Union today, in case C-186/16,  Ruxandra Paula Andriciuc and others v. Banca Românească, delivered a historic ruling for all debtors in Swiss francs.

The ruling states that when a financial institution approves a loan in a foreign currency, it must provide the borrower with sufficient information to enable him to make a prudent and informed decision. The service provider must communicate to the user all relevant information so that he can assess the economic consequences of such a provision on his financial obligations, which was not the case, both in Romania and here. This ruling is very significant because it is a ruling of the EU Court, and its rulings are binding on all courts of EU member states.