Croatian Supreme Court rules on Swiss franc loan conversions

The expanded panel of the Croatian Supreme Court announced that it has adopted a decision in the case colloquially referred to as “converted CHF loans”. The written ruling will be sent to the parties before a public announcement is made.

Consumer groups estimate that total compensation for borrowers will be about €700 million, a reduction from an earlier estimate of €1.2 billion. Banks maintain that CHF borrowers are already compensated through the conversion process. The court also rejected exemption requests for several judges who were alleged to have conflicts of interest.

The decision will determine whether borrowers whose mortgages were linked to the Swiss franc will receive full restitution for over‑payments caused by exchange‑rate clauses and variable interest rates.