Franc

Croatia has stepped in to help borrowers with increasingly expensive loans in Swiss francs by freezing the exchange rate for a year.

Since last Thursday, the exchange rate of the franc to Croatian kuna has risen by about 20 per cent.

Volksbank Romania announced on Monday that it would maintain, for a period of three months (from January 20 through April 17, 2015) a flat exchange rate of 3.8035 lei for one Swiss franc, for the payments of the next three monthly installments owed by customers.

Photo credit: (c) Gabriel PETRESCU / AGERPRES ARCHIVE

NBS "looking for solution" to Swiss franc loans

BELGRADE -- The National Bank of Serbia announced on Monday that it would "strive to find a swift solution to help citizens with loans in Swiss francs," Beta reported.

They are now "in dire straits after the Swiss currency surged suddenly."

Prime Minister Victor Ponta, the Chair of the Social Democrat Party (PSD), wants parliamentary parties to find common solutions to the issues raised by the Swiss franc crisis; he warns, however, against 'unrealistic expectations.'

Prime Minister Victor Ponta on Friday asked the Minister of Finances Darius Valcov and the central bank [the Romanian National Bank - BNR] Governor Mugur Isarescu to discuss about the Swiss Franc's massive surge this week.

Photo (c): Silviu MATEI / AGERPRES STREAM

The Prime Minister confirmed this information to AGERPRES.

A leap sudden leap in the value of the Swiss franc in relation to the euro has caused a knock-on effect Croatia, bringing bad news to Croats holding loans in the Swiss currency.

During a single day the franc rose by 15.8 per cent in relation to the kuna.

The kuna is linked to the euro, to which the Croatian national bank, HNB, tries to keep the kuna pegged.

By Marc Jones

Global markets were thrown into turmoil on Thursday as a shock move by Switzerland to abandon its more than three-year-old cap on the franc sent the currency soaring and Europe's shares and bond yields tumbling.

The Swiss National Bank unexpectedly scrapped its cap on the franc on Thursday, sending the safe-haven currency crashing through the 1.20 per euro limit it set more than three years ago.

By Catherine Bosley

Swiss National Bank President Thomas Jordan said he doesn?t expect Greece to leave the euro area and warned of risks associated with such a move.