CBA Analysis no. 53

The problem of the strengthening of the Swiss franc has not been
solved by the temporary fixation of the accounting exchange rate
at CHF/HRK 6.39 at the banks’ expense in January 2015. A
permanent solution is yet to be found as the current one applies
only for a year. The purpose of this analysis is to present and
compare the solutions applied so far in Central and South-Eastern
European countries. A wide range of solutions indicates various
options; from letting creditors and debtors agree on a solution
(Austria, Bosnia and Herzegovina, Slovenia, and Romania), through
strong government intervention (Hungary, Croatia), to hybrid
solutions that combine agreements between creditors and debtors
with “soft” government intermediation (Serbia, Poland).

It is not yet possible to conclude which solution would be the best.
It has been shown that some interventionist solutions have not
been so beneficial to debtors as they seemed at first (solutions
applied in Hungary in 2011). In Croatia, the fixation of the
accounting exchange rate and interest rates at a low level has been
a major step towards the protection of debtors in the context of
comparison with the affected countries. Although its impact is not
visible at first sight, a stable exchange rate of the kuna against the
euro provides the most important indirect protection also for
debtors with Swiss-franc-indexed loan agreements.

CBA Analysis 53 - CHF


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