Obliged Croatian Swiss franc borrowers and the Franak Association, which spoke to them, are hailing their last ‘David versus Goliath’ court triumph over the banks.

Croats stayed with tremendous debts over loans taken out in Swiss Francs are praising a last court ruling to support them as of late – affirming an underlying decision five years prior.

“This is a case of the fight amongst David and Goliath. A little David with vision and confidence can vanquish the mammoth,” Ines Bojic, the legal counselor for the Franak Association, which recorded the claim against eight banks, said.

The High Commercial Court in Zagreb expelled the interests of the banks on account of loans taken out in Swiss francs, ruling that the money trade condition on account of franc-filed loans was currently invalidated.


The Franak Association has been campaigning for a considerable length of time for the privileges of individuals with loans in Swiss francs in participation with Croatia’s Consumer Protection Association, UZP.

Around 120,000 Croatians took out loans pegged to the franc in the vicinity of 2005 and 2008, pulled in by the lower financing costs.

They confronted debacle after the franc out of the blue took off in an incentive after the 2008 worldwide financial emergency, prompting a sharp ascent in their regularly scheduled payment installments.

Financial analysts, legal counselors, mathematicians, political researchers and other individuals at that point united together on the Internet, and chose to make a move to enhance their position and power the banks to change over the loans into loans in the national money.

Following the most recent court ruling, the Croatian borrowers would now be able to document claims against the banks exclusively, looking for invalidation of their credit contracts.

Customer rights bunches had requested that the banks help borrowers by bringing down the financing costs, yet the banks cannot.

The Franak Association at that point propelled legitimate activity against Raiffeisen, Hypo Alpe Adria, Zagrebacka, Privredna, Erste, OTP, Splitska and Sberbank.

On 4 July 2013, the Zagreb Commercial Court issued a ruling to support them, saying the banks did not have the privilege to offer loans with variable advance value and variable financing costs.

“Such a blend is completely inadmissible for such a significant lot of quite a few years and on occasion when the swapping scale drifts,” Juge Dobronic said.

The judge requested the banks to change over the franc loans into Croatian money, and change variable financing costs to settled ones.

Dobronic said the banks had disregarded customers’ rights since they were not satisfactorily educated thus not in a situation to appropriately survey whether to take out the loans or not.

The banks had the privilege to claim the 2013 ruling – and utilized it. Presently, in any case, the issue has been at long last understood, five years back after that decision.

As indicated by a few gauges, the banks could wind up paying move down to 10 to 15 billion kunas, or between 1.35 billion to 2 billion euros.

Individuals from the Franak Association accept the banks will battle by all way to guarantee this does not occur, which is the reason it has prescribed its individuals to run with claims, adding that they are prepared to help every one of them.

In the interim, the state of mind is excited.

Referring to Croatia’s World Cup breathtaking win over England recently, it stated: “We can’t dispose of the feeling that our triumph is fundamentally the same as the triumph of our footballers in the semi-last match with the English”.

For the two triumphs, forfeit, work, will, tirelessness and trust were required, it included.


Petros Stathis