Croatia: Supreme Court decision on Swiss franc loans final, but legal paths remain open

Croatia's Justice Minister Damir Habijan affirmed that the Supreme Court's decision regarding loans denominated in Swiss francs is legally binding. However, he stressed that the legal process for both consumers and banks involved is not concluded, as they can still pursue constitutional appeals and international legal remedies.

Habijan commented on the decision made by the expanded panel of the Supreme Court, highlighting its importance in unifying judicial practice. "From the perspective of the executive branch, we respect the separation of powers," Habijan stated. He acknowledged that parties have the option to utilize available legal mechanisms, emphasizing that the Supreme Court's role in harmonizing case law is significant.

He further elaborated that consumers and banks still have recourse, including the possibility of approaching the Constitutional Court. Following that, there remains the option of proceedings before the European Court of Human Rights. Habijan reiterated that while the Supreme Court's decision is final, the process for the involved parties is not necessarily over.

The minister also addressed a statement by SDP leader Siniša Hajdaš Dončić, who accused Prime Minister Andrej Plenković of allowing the "banking lobby to play its game" and failing to publicly pressure the judiciary. Habijan expressed shock at such remarks, particularly from someone aspiring to be prime minister, deeming the suggestion of executive pressure on the judiciary as contrary to the principle of separation of powers.

The Supreme Court's expanded panel ruled that users of Swiss franc loans who accepted the legal conversion to euros are not entitled to the repayment of the principal based on void contract clauses. They are only eligible for default interest on overpaid amounts until the conversion date. The Franak association has criticized this decision, calling it illegal, unconstitutional, and discriminatory, arguing it places users of converted loans in a disadvantageous position compared to those who did not convert.

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