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Constitutional Court of the Republic of Slovenia suspended the Law impacting loans in Swiss Francs (CHF) | NKBM

Constitutional Court of the Republic of Slovenia suspended the Law impacting loans in Swiss Francs (CHF)

Constitutional Court of the Republic of Slovenia suspended the Law impacting loans in Swiss Francs (CHF)

15 March 2022
OBVESTILA
In accordance with the Rules & Regulations of the Luxembourg Stock Exchange we hereby provide the following information: On 10 March 2022, the Constitutional Court of the Republic of Slovenia issued its decision to suspend the "Law on limiting and distributing currency risk among creditors and borrowers of loans in Swiss francs” ("CHF Law").
 

As described in more detail in the Nova KBM d.d.'s announcement dated 3 February 2022, CHF Law requires the lenders to restructure consumer loans denominated in CHF (or containing a currency clause in CHF) that were concluded between 28 June 2004 and 31 December 2010, and to retroactively introduce an exchange rate cap clause in relation to such loans.

 

Preliminarily, Nova KBM d.d. assessed the financial impact of the CHF Law not to exceed EUR 45-50 million, however, this is still subject to ongoing detailed analysis.

 

The decision of the Constitutional Court was issued following a request for review of constitutionality of the CHF Law, which was filed by Nova KBM d.d. and several other Slovenian banks. There was also a separate request for a constitutionality review of the CHF Law filed by the Bank of Slovenia.

 

The applicability of the CHF Law has been suspended until a final decision is rendered by the Constitutional Court on conformity of the CHF law with the Slovenian Constitution. During this time the deadlines set for the banks' obligations under the CHF law do not apply.

 

Considering that several of the provisions of the CHF law raise concerns as to their compliance with the Slovenian Constitution and the European rules on prudential supervision, as well as that the CHF law is unclearly drafted and does not allow for a clear interpretation, Nova KBM d.d. believes that the Constitutional Court should render the CHF Law unconstitutional and annul it in its entirety.

 

 

This announcement will be available on the Nova KBM d.d.'s website as of 15 March 2022.

 
 
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