Serbian government adopts law on Swiss Franc loans

Finance Minister Sinisa Mali is quoted as saying that the law solves the problem, adding that a compromise solution had been found following difficult negotiations.

“The remainder of the debts would be converted into Euros and the converted amount would be reduced by 38 percent,” he said and added that the draft law covers all holders of loans indexed in Swiss Francs, regardless of how much they owe.

“This lex specialis is a compromise solution between several interested parties – private individuals and the associations representing them, the banks and the state as the third party ,” Mali added. 

Under the draft law, the highest possible interest rate is 3.4 percent plus the three month or six month EURIBOR which means fixed interest rates cannot go higher than four percent. It obliges banks to offer clients new contracts within 30 days of the law taking effect.

The statement said that the law will solve the repayment problems facing 16,800 people with mortgages in Swiss Francs.