Letter from Yves Mersch, Member of the Executive Board of the European Central Bank (ECB), to Boris Lalovac, Minister of Finance of the Republic of Croatia, regarding the non-consultation of the ECB on a Law of 23 January 2015 amending the Law on Consumer Credit
Date: 2015-03-10
Institutions: European Central Bank
Subjects: legal basis

Yves MERSCH 
Member of the Executive Board 

Mr. Boris Lalovac 
Minister of Finance 
Katančićeva 5 
10000 Zagreb 
Croatia 

Dear Mr. Lalovac,  

ECB-PUBLIC 

[COURTESY TRANSLATION]1 

10 March 2015 

It has come to the attention of the European Central Bank (ECB) that amendments to the Law 

on Consumer Credit were adopted by the Croatian Parliament on 23 January 2015. 

These amendments to the Law on Consumer Credit fix the exchange rate for the Swiss franc at 

kuna 6.39 for one year for loans in Swiss francs and loans in kuna containing a currency clause 

for  one  year  starting  from  the  entry  into  force  of  the  amendments.  The  amendments  further 

provide that costs relating to the difference in the amount of a certain instalment by applying the 

exchange  rate  referred  to  in  the  amendments  in  relation  to  the  exchange  rate  formed  on  the 

foreign exchange market, according to supply and demand, shall be borne by credit institutions. 

Article 127(4) second indent of the Treaty on the Functioning of the European Union  requires 

national authorities to consult the ECB on draft legislative provisions concerning matters that fall 

within its competence. Under Article 2(1) of Council Decision 98/415/EC of 29 June 1998 on the 

consultation  of  the  European  Central  Bank  by  national  authorities  regarding  draft  legislative 
provisions2.issues  related  to  rules  applicable  to  financial  institutions  insofar  as  they  materially 
influence the stability of financial institutions and markets are expressly listed among the areas 

on  which  the  ECB  should  be  consulted.  Since  2008,  the  ECB’s  Annual  report  includes 

information regarding clear and important cases of non-compliance with the obligation to consult 

the ECB. 

The ECB acknowledges that the Croatian government had to address this matter rather urgently 

and understands that the decision taken by the Swiss National Bank to give up the defence of 

its  national  currency  exchange  rate  against  the  euro  has  had  a  serious  impact  on  Croatian 

debtors who found themselves in a very difficult financial situation considering that their monthly 

instalments in kuna have increased significantly. 

1  
2  

The official ECB letter is addressed in the official language of the concerned Member State. 
OJ L 189, 3.7.1998, p. 42. 

 
 
 
 
 
                                                 
Nevertheless, the ECB would appreciate the Ministry of Finance giving due consideration to the 

above  observations  by  honouring  its  obligation  to  consult  the  ECB  on  all  cases  of  draft 

legislation concerning matters that fall within its field of competence at a stage in the legislative 

process that allows sufficient time to take into account its views. 

ECB-PUBLIC 

Yours sincerely, 

[signed] 

Cc: 

Mr B. Vujčić, Governor of Hrvatska narodna banka 

    Mr P. Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs 

  Mr R. Requena, Director-General Legal Service, European Commission  

Encl. 

Guide to consultation of the ECB by national authorities regarding draft legislative provisions