Croatia to Continue With CHF Loan Plan Over Banks’ Protests
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Croatia will continue with plans to allow the conversion of $3.4 billion of Swiss-franc loans into euros after foreign banks said the proposal would violate European Union laws and bilateral investment treaties.
The strategy, which is expected to be detailed next week, would cost banks as much as about 6 billion kuna ($892 million), while some losses would be tax-deductible, said Deputy Premier Branko Grcic He was responding to a joint statement Thursday by Erste Group Bank AG, UniCredit SpA, OAO Sberbank, Raiffeisen Bank International AG and Hypo Group Alpe Adria AG that criticized the plan.