On 24 October 2019, the Slovenian National Assembly ended the legislative procedure for the draft Act on the relationship between creditors and borrowers in respect of loans in Swiss francs (Draft Act). The Draft Act envisioned a mandatory conversion of CHF to EUR denominated loans. The Draft Act marks the second attempt to systematically convert the CHF denominated loans, whereby most of them are housing loans. The National Assembly’s working body on Finance Policy did not approve the Draft Act, thus the legislative procedure ended at the second reading. Potential conversions shall now be decided on a case by case basis before courts. The European Central Bank yet again assisted the National Assembly by issuing its opinion no. CON/2019/27, dated 18 July 2019, addressing the impact the Draft Act would have on the Slovenian banking system.
Suzana Bončina Jamšek, LL.M.