Croatia's Supreme Court Rules on Swiss Franc Loan Conversions

The Supreme Court of Croatia announced on May 27, 2026, that an expanded council has reached a decision on the case of converted Swiss franc loans. The specifics of the ruling will be disclosed to the public once the decision is formally written and distributed to the involved parties. This case, colloquially known as 'converted loans in CHF,' concerns the legal standing and potential compensation for borrowers who converted their loans from Swiss francs.

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Today, May 27, 2026, the expanded council of the Supreme Court of the Republic of Croatia has made a decision in the case colloquially known as 'converted loans in CHF'. After the decision is written and sent to the parties, the public will be informed through a statement.

While the court has not yet revealed the contents of its decision, the Association "Franak," which has advocated for public hearings, has provided its own analysis. With the help of financial experts, "Franak" estimates that the total compensation owed to citizens who converted their loans amounts to approximately 700 million euros. This figure is a revision from earlier estimates, which placed the compensation at 1.2 billion euros. The association stated this new assessment was prompted by what they describe as "daily attacks" from the Croatian Banking Association (HUB).

The HUB has responded to the ongoing debate, asserting that legal outcomes concerning the conversion of Swiss franc loans should be determined impartially. They stressed the importance of making these decisions free from public pressure, discrediting of judges, experts, and the media. The association argues that the solvency of banks could be jeopardized if consumers were compensated according to the law as interpreted by "Franak."

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The total compensation for citizens with converted loans in Swiss francs is around 700 million euros.

The Supreme Court's forthcoming announcement is highly anticipated, as it will provide legal clarity on the rights and financial implications for thousands of Croatian citizens who took out loans denominated in Swiss francs and subsequently converted them. The differing estimates from "Franak" and the banks highlight the significant financial stakes involved in this long-standing legal battle.

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Decisions on the legal effects of the conversion of Swiss franc loans must be made independently, without public pressure and discrediting of judges, experts, and the media.