Croatian Supreme Court limits compensation for CHF loan borrowers

The Croatian Supreme Court ruled that borrowers of Swiss franc (CHF) loans who converted to euros are entitled only to interest on overpaid amounts, not to a refund of the principal. The court awarded roughly €4,500 in interest and about €3,000 in legal costs to the plaintiff, far less than the full compensation of around €20,000 originally sought.

Banks expressed dissatisfaction with the judgment, arguing that the 2015 conversion law failed to provide a lasting solution and that the ruling favors lawyers, who stand to profit from continued litigation. The banking association noted the possibility of further appeals, including to the Constitutional Court, and highlighted uncertainty over who will bear future legal expenses. The decision also coincides with recent European Central Bank interest‑rate hikes, which could affect borrowers with variable‑rate loans.