The CBBH Supports the Efforts of Finding the Solution for the CHF Borrowers

On the occasion of protests that the Association of Borrowers "Švicarac" announced for Saturday, March 28, 2015, in front of the Central Bank of Bosnia and Herzegovina in Sarajevo, the CBBH would like to stress once again that it supports all efforts in finding the solutions for borrowers of loans with currency clause in Swiss franc.

The CBBH emphasizes, however, that it cannot take any concrete measures towards banks, since it does not have legal jurisdiction in the supervision of commercial banks and the adoption of by-laws enactments that regulate the operations of banks.

The CBBH has tried to be a mediator in finding the solutions between banks and users of loans with currency clause in CHF, acting within its jurisdiction and the Standing Committee for Financial Stability. Considering that the Memorandum of Understanding provisions, establishing the Standing Committee on Financial Stability, are not legally binding to its members, and that they cannot be basis for any legal claim on behalf of any member of the Standing Committee or third parties during their practical application, the Standing Committee for Financial Stability can express its position exclusively in the form of recommendations, which, is in terms of loans extended with the CHF clause has been done on several occasions.

The loan agreement represents the will of two parties, and the rights and obligations arising from the contractual relationship of a bank and its client are to be regulated by the Law on Obligations. The CBBH estimates that partnership between the bank and the client is necessary, and
finding of solutions is an urgent matter, as for the clients, in order to limit their additional costs, so as for the banks, because of the reputational risk, the increase of non-performing loans, requests for additional loan provisioning and direct impact on the financial result.

The optimal solution in this case would be an agreement between the bank and the client, while the final solution would be resolution of the dispute before the competent court.