Swiss francs loans

Protection of Swiss francs Borrowers

Many Borrowers in Cyprus made their Loan Agreements in Swiss francs because at the time of the Loan Agreements, borrowing in Swiss francs was cheaper than borrowing in Euro. However, in the years followed the currency exchange changed, something which lead to the increase of the monthly installments and the interest rates. Local currency devalued accordingly. Following the ruling of the European Court of Justice made on the 21/01/2013 (Case – 26/13 Kásler Árpád, Káslerné Rábai Hajnalka v OTP Jelzálogbank Zrt.), the Banks in Cyprus are proceeding with the restructuring of such Loan Agreements, since possible Court proceedings may find national Courts to follow the said ECJ ruling and declare such terms in the Loan Agreements unfair, arguing whether the banks misled Borrowers by not making clear in the Loan Agreements that the variable rate may increase if the Swiss francs appreciated.

Documents & Info

Kasler case.pdf