Regulatory Alerts2023-01-01
Law on the Conversion of Swiss Franc (CHF) Denominated Loans Into Euro (EUR) Denominated Loans
The Parliament of Montenegro enacted this law to mandate the conversion of all Swiss franc-denominated loans into euros at the official exchange rate on the agreement date. Commercial banks and third-party assignees are required to recalculate outstanding debts at a fixed interest rate of 8.2% per annum and provide specific documentation to facilitate the transition. The Central Bank of Montenegro supervises implementation, while strict penalties apply to institutions failing to comply with conversion, rescheduling, or suspension of enforcement obligations.
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