Committee on Economy, Finance and Budget held a consultative hearing titled: “Housing loans indexed in CHF (Swiss Francs) and Implementation of Foreign Currency Clause in the Loan Contracts – Legal Regulation”.

The representatives of the following: Central Bank of Montenegro (CBCG), Banking Ombudsman, Association of Banks, NGO Consumers Protection Center (CEZAP), Hypo Alpe Adria Bank and Ministry of Finance informed the Committee members on various aspects of the problem relating to housing loans indexed in CHF (Swiss Francs). The representatives of the NGO “CEZAP” pointed out that the manner of application of the foreign currency clause was especially problematic, as well as that the credit risks that might arise from approving of loans indexed in a foreign currency, were not being adequately presented. On the other hand, the representatives of Hypo Alpe Adria Bank pointed out that the contracts were concluded in accordance with the current legal regulations, as well as that the clients were familiar with all the loan conditions.

The Committee noted that changes in the foreign currency relations between the Swiss Franc and the Euro had led a certain number of citizens of Montenegro to a situation where they were unable to pay annuity to these loans in due time or that they were managing to pay but with significant difficulties. Additionally, the Committee noted that the court proceeding initiated on the basis of the collective lawsuit of the users of said loans was ongoing, and pointed out that it was one of the ways for finding a solution. The Committee members were of opinion that other options should be bore in mind, such as an attempt to resolve the problem with an agreement between the bank and the clients or by amending the existing regulations bearing in mind the solutions in the region relating to the same or similar issues.

Among other things, it was pointed out at the Committee meeting that is was necessary to include all relevant institutions in resolving the said problem, placing special focus on the Central Bank of Montenegro, Ministry of Economy, Ministry of Justice and Ministry of Finance.

Bearing in mind the submitted written opinions, expressed views of representatives thereof, as well as the views of the Committee members, it was agreed at the meeting to determine the recommendations or assessments and positions at one of the future Committee meetings, which would then be delivered to all participants of the consultative hearing.

The Committee postponed the 47^th meeting.