Removal of foreign exchange clause as solution to credits in Swiss francs?

The problems of citizens who took out loans in Swiss francs could be solved by the Serbian dinar, Novosti writes, as reported by Tanjug.

As the daily writes, the most likely solution to this over-a-decade-long problem for close to 20,000 people in Serbia is to remove the foreign exchange clause, which ties these loans to Swiss francs. This means that the next installments would be worth as much as when the loans were taken out, expressed in dinars.

If this solution is adopted, banks would recalculate the loans, reducing the remaining debt, Novosti writes.

– The banks would recalculate the claims down to a reasonable amount – says Jelena Pavlovic, a member of the Managing Board of the CHF Srbija association.

She explains that, instead of bad clients and loans, banks would get good ones, while at the same time freeing themselves of the burden of large reservations for bad loans. All the experiences from the region say that banks became more profitable after implementing this solution.

Members of CHF Srbija have been protesting in front of the Supreme Court of Cassation in Belgrade for six days now, demanding that the court adopts a clear legal position on these loans.

Official bank data show that 16,814 citizens are currently paying out loans in Swiss francs. According to the data of CHF Srbija, over 22,000 citizens took out these loans in Serbia from 2005 till 2011.

Centar za zaštitu korisnika bankarskih usluga CHF Srbija

CHF Srbija

Jelena Pavlović

loans in Swiss francs

credits in Swiss francs