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17/08/2016

The ninety-first meeting of the Council of the Central Bank of Montenegro, chaired by the Governor Milojica Dakić, was held today.

The Council considered the Draft law amending the Law on conversion of loans in Swiss francs (CHF) into euros (EUR) as of 1 August 2016, and having in mind all possible risks and adverse consequences of the adoption of this law, it concluded that the CBCG will remain faithfull to its position regarding the first version of this document from July 2016.

By reviewing the newly proposed solutions from the Draft law amending the Law on conversion of loans in Swiss francs (CHF) into euros (EUR) as of 1 August 2016, it was noted that they are substantially different from the proposal that the Central Bank gave in its opinion. The Council assessed that the newly proposed solutions put the borrowers at a disadvantage, prevent consistent application of the methodology used when calculating the obligations of the borrower, and lead to a revision of conversions conducted in accordance with the applicable law. Also, the suggested solutions contain a number of ambiguities and contradictions that would, in case of adoption, prevent their proper implementation and would cause further dilemmas and difficulties when it comes to its implementation in practice.

The Council concluded that if the legislator decides to adopt the proposed amendments to the Law on conversion of loans in Swiss francs (CHF) into euros (EUR), for the above reasons, it is essential to change the text of the Draft law, and to this end, the Central Bank proposed appropriate changes in the form of amendments, which could be proposed by an authorized proponent.