Franak: What Did Government Give Banks to Withdraw from Arbitration?

Total Croatia News

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Marić told a press conference on Tuesday that an agreement had been reached with six banks that had sued Croatia before the ICSID in Washington over the conversion of CHF loans. He said that in this way the possible payment of HRK 2.5 billion from the state budget was avoided.

The banks took legal action against Croatia to seek compensation for the costs of the conversion, which was carried out based on a 2015 law.

Franak said it was shocking that the announcement was made at a time when the Constitutional Court was deciding on lawsuits brought by banks against a Supreme Court ruling that upheld the finding that the CHF currency clause in loan agreements concluded between 2004 and 2008 was null and void.

“The unfair banks, which consciously and deliberately cheated 125,000 Croatian families, do not deserve any concessions. Besides, the EU Court has clearly and unequivocally ruled in the Achmea case that arbitration proceedings between EU member states are unlawful and prohibited,” the association said, adding that despite these facts the banks, which owe citizens HRK 20 billion, had been given or would be given certain concessions.

Franak said that the Constitutional Court would rule on the banks’ lawsuits on Wednesday, adding that if the lawsuits were thrown out, there would be no further obstacles for former CHF loan holders to seek compensation from the banks based on private lawsuits.

For more on this story and the rest of the business news in Croatia, follow the dedicated TCN business section


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