The first hearing in a trial against eight banks relating to the Swiss franc foreign currency clause and their unilateral decision to increase interest rates will be held on Friday, 1 March, the Franak nongovernmental organisation reported on Tuesday.
The Zagreb Commercial Court last December upheld the collective suit against the eight banks - - Zagrebacka, Privredna, Erste, Raiffeisenbank, Hypo Alpe-Adria-Bank, OTP, Societe Generale-Splitska Banka and Volksbank - by the Consumer Protection Association against eight banks relating to the Swiss franc foreign currency clause and their unilateral decision to increase interest rates but rejected the suit relating to demands to amend contractual obligations and the principle loan amounts to be pegged to the euro.
The court then ordered that the prosecution forward the contentious contracts and the advertisement for loans tied to the Swiss franc to each of the banks individually within 15 days.
The Consumer Protection Association was required to note for each individual bank whether the bank offered loans only in Swiss francs or whether they offered the choice of taking a loan in kuna or euros.
This is the first suit of this kind in the history of Croatia's judicial system.
Apart from March 1, other hearings in this trial are scheduled for March 8, 11, 13 and 15.
The Franak NGO notes that more than 100,000 clients have loans pegged to the Swiss franc, of which 75,000 are housing loans, and in some cases repayment rates have increased from 35% to 100%.
