Croatia to aid its franc borrowers

Croatian PM Zoran Milanovic has authored a plan to help Croatian franc borrowers. The Croatian government will freeze the franc-kuna exchange rate at the level it was before the dramatic 17 percent rise of the CHF. This scenario is to be maintained for one year and the banking system will be forced to cover the costs of this initiative. 300,000 Croatians are affected by the Swiss currency’s rise in value. The first country to alleviate a potential problem with franc-denominated mortgages was Hungary, which converted all franc loans into the forint.