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Croatian Borrowers Sue Banks Over Swiss-Franc Loans, Radio Says

Croatian borrowers with loans in Swiss francs are suing commercial banks over contracts allowing the banks to charge a variable interest rate on monthly loan payments, state radio reported, citing people from the borrowers’ association.

The Merchant Court in Zagreb has accepted the suit in which about 120,000 borrowers are suing eight commercial banks in Croatia, the radio said today. The claimants want the banks to limit the application of the so-called foreign-currency clause, according to the public broadcaster.

About a quarter of loans in Croatia are pegged to the Swiss franc, according to the central bank. Loans denominated in euros have not been affected by currency fluctuations as the national currency, kuna, is pegged to the euro.

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