HUB: 'Relativising the Supreme Court decision does not contribute to legal certainty'

The Croatian Banking Association (HUB) has expressed concerns over recent criticisms directed at the Constitutional Court's decision regarding the conversion of Swiss Franc (CHF) loans into euros. In response to public statements aimed at challenging the legitimacy of the court’s ruling, HUB emphasized that such actions undermine legal certainty and public trust in the judiciary. The association reiterated its belief that the 2015 legal conversion was intended to serve as a comprehensive and final resolution to the issue of CHF loans.

According to HUB, the conversion process addressed the effects of the Swiss franc exchange rate increase, applied interest rates comparable to those of euro-denominated loans, and incorporated all identified differences and overpayments into the new loan calculation, including the principal amount. This process was fully borne by the banks, estimated at approximately one billion euros in costs. Despite their stance on the matter, HUB acknowledged that judges have the right to interpret the law based on their understanding of facts and legal principles, which forms the foundation of judicial independence and the rule of law.

HUB raised concerns about attempts to relativize the court’s decision made after a thorough legal debate, particularly when the ruling was reached by a majority vote in the expanded chamber of the Constitutional Court. They criticized the portrayal of the minority opinions of some judges as the sole relevant perspective while attempting to present the majority decision as an exception or a result unrelated to legal arguments. Additionally, they warned against the potential for renewed legal proceedings and expectations, despite the long-standing legal uncertainty faced by users of CHF loans over the past decade.

HUB also highlighted the risks associated with creating the impression that new procedures were predetermined or their outcomes certain, potentially exposing citizens to additional costs and further years of uncertainty. They stressed that judicial independence does not mean accepting only decisions that align with personal expectations but rather respecting all decisions, even those with which one disagrees. HUB affirmed its commitment to advocating for the view that the 2015 conversion should have been the final solution to the CHF loan issue while continuing to uphold the principles of judicial independence, legal certainty, and respect for Croatian institutions.

The Association Franak announced plans to file constitutional complaints following the Constitutional Court's decision that consumers who converted their CHF loans to euros are entitled only to accrued interest up to the date of conversion, excluding the principal amount. This decision was reached by a vote of nine to four. Goran Aleksić, coordinator of the economic and legal team at Association Franak, stated that the court’s ruling contradicts European Union law and announced intentions to submit constitutional complaints.

HUB expressed concern over the expectation that the Constitutional Court would decide on the merits of this legal issue or replace the position taken by the Constitutional Court, emphasizing that the Constitutional Court is not a regular court nor an instance that decides on the merits of disputes but rather determines whether there are violations of constitutional rights in proceedings before ordinary courts.