CHF debtors in Serbia saved by state and banks deal, paper says

Source: Reuters/Arnd Wiegmann

People with mortgages in Swiss francs (CHF) will have their debt principal covered by 40 percent, 15 percent of which will be the state participation and the banks will write-off between 22-23 percent, the Beta news agency reported on Friday, quoted the Vecernje Novosti daily.

The rest of the debt principal will be converted into Euros based on the National Bank of Serbia exchange rate with a yearly interest of 3.5 percent.

The state will cut down the bank levy for two to three percent.

 The move followed the Supreme Court of Cassation ruling to annul the CHF mortgages and order their conversion into Euros.

The daily quoted sources as saying the debtors who owe 540 million Euros were more satisfied with the solution than the banks.