11.9.2015 Joint press release

ERSTE&STEIERMÄRKISCHE BANK d.d.
HYPO ALPE-ADRIA-BANK d.d.
OTP BANKA d.d.
PRIVREDNA BANKA ZAGREB d.d.
RAIFFEISENBANK AUSTRIA d.d.
SBERBANK d.d.
SOCIETE GENERALE SPLITSKA BANKA d.d.
ZAGREBAČKA BANKA d.d.

BANKS URGE FOR DIALOGUE WITH GOVERNMENT

We, as banks operating in Croatia as subsidiaries of international banking groups, have been constantly expressing and realizing our readiness to collaborate with the Croatian Government in finding a proper and sustainable solution with regard to the restructuring of CHF denominated mortgage loans.

We are confirming our view that any potential alternative should be aligned with the recommendations of the European Commission in its Country Report Croatia 2015, where it was emphasized that any remedy shall be "proportional, equitable and have a solid legal basis with a focus on helping generally distressed borrowers."

Therefore, we are ready to propose an improved solution to the existing government draft law in which:

  • the burden of restructuring will be balanced and fairly distributed among the different stakeholders and where
  • any legislative intervention in existing loan contracts may only be granted as relief towards generally vulnerable borrowers under the specifically determined social criteria, being one of the options the establishment of the Social Responsibility Fund, as it is being considered in Poland.

With the purpose of reopening of the dialogue with the Government, we are supporting further application of the existing laws as they are in force, reducing the applicable interest rate and also exchange rate until a solution is found. As long as constructive dialogue is ongoing we would commit ourselves not to instigate or pursue any proceeding aimed at eviction of the CHF housing loan borrowers.

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