RBA Bank to Offer Lower Interest Rates for Croatian Loans Converted from Francs into Euros

By 11 December 2015

Good news for RBA customers in Croatia.

Raiffeisenbank Austria (RBA) announced on Friday that at the beginning of 2016 it will send to its customers in Croatia who have loans in Swiss francs new calculations for the conversion of these loans into euros, with lower interest rates, regardless of whether they have already accepted the initial offer for conversion or not, reports Jutarnji List on December 11, 2015.

"RBA is convinced that, in the calculation of the conversion, it has consistently implemented all the legal provisions of the applicable laws. However, due to different interpretations of the law, complaints which have been addressed to RBA, and in the interest of long-term relationship with its clients, RBA has decided to make new calculations of the conversion for all customers – both those who have already accepted the calculation of conversion and those who have not accepted it", the bank said in a statement.

It added that the original calculation of conversion was made in accordance with the consistent application of the law and that RBA had taken into account the necessary reduction in interest rates, which was confirmed by a certified auditor. Thus, according to the RBA, the calculation of the conversion which was sent to customers prior to legal deadline was the result of consistent application of the law. However, "due to different interpretations of the law, RBA has decided to make new calculations. The notice about the new calculation method was sent to clients today, 11 December", the bank said.

RBA will now apply lower interest rates, which are actually the interest rates which are applied to those customers who usually receive their regular incomes through the bank. The bank will send the new calculations, together with the annexes to the contracts, by registered mail during the first half of January 2016, and customers will have up to 30 days to accept the new calculations. All costs of the new calculations will be borne by the bank itself.