Serbian Banks recalculating Swiss Franc Mortgages

“Banks are implementing the complex process of calculating new loan terms in line with the law and that process takes time, depending on the number of clients. Some banks sent out conversion offers last week and some will do so soon, certainly within the 30 day deadline,” a statement said.

The banks will offer their clients interest rates which were in place at each individual bank on March 31, 2019 but if a bank offered loans in Euros with high interest rates on that date, the interest rate will be set at 3.4 percent as defined by law.

A law on converting mortgages indexed in Swiss Fancs was adopted in April. Under that law, the loans will be recalculated into Euros and lowered by 38 percent to solve the problem facing 15,785 people. The government has decided to earmark about 100 million Euros from the state budget with banks setting aside another 130 million Euros.