Home / Business and Politics / Franak Association: It is in the interest of citizens to know the details of the government agreement with banks

Franak Association: It is in the interest of citizens to know the details of the government agreement with banks

Image by: foto

The Franak Association on Tuesday questioned why the government is withholding details of the agreement with banks regarding the suspension of arbitration proceedings if that agreement is beneficial for Croatia, while also calling for the ‘urgent and immediate’ publication of the text of the agreement.

The Franak Association referred to yesterday’s article on the Index.hr portal titled ‘The government has reached an agreement with banks regarding the Swiss franc, the settlement is worth 2.5 billion kuna and is a secret’.

The association stated that the government does not justify its claim that the need to protect the right to restrict access to information prevails over the public interest, which needs to be determined by a proportionality test, the execution of which is unknown.

– Namely, it is not enough for a minister or prime minister to arbitrarily decide that a document should be marked ‘Confidential!’. Before classification, a proportionality assessment procedure in relation to the public interest must be conducted. Why hasn’t the Government of the Republic of Croatia provided the public with an explanation from the proportionality test to clarify the justification for the ‘Confidential!’ designation? Otherwise, we still believe that it is in the interest of Croatian citizens to know the details of the agreement with the banks based on which OTP, RBA, PBZ, ZABA, Erste, and Sberbank withdrew from the arbitration proceedings in Washington – wrote the Franak Association.

They also asserted that there is doubt whether this agreement was the reason for the government to present completely unfounded and controversial positions against Croatian and European law in its opinion to the EU Court regarding the Croatian case C-567/20, unfortunately in favor of the banks, while the European Commission opined that Croatian consumers, just like Hungarian and Polish ones, have the right to full restitution, even if it were legally prohibited.

However, Croatian law did not prohibit restitution; on the contrary, it prescribed a ban on conditioning conversion with any waivers of consumer rights, wrote the Franak Association.

Why did the government send a statement to the EU Court against consumers and in favor of banks, despite all relevant and binding EU court rulings? Does this have to do with the agreement with the banks? Does the government’s policy relate to the decision of six judges of the Supreme Court of the Republic of Croatia that consumers would have no rights after conversion?, asked the Franak Association.

They called on the government to urgently and immediately publish the text of the agreement with the banks based on which the banks renounced arbitration in Washington.

– This should dispel doubts that this agreement was the reason for the dishonorable and immoral role of the Government of the Republic of Croatia in the proceedings at the EU Court regarding case C-567/20, in which the Government of the Republic of Croatia unjustifiably sided with the banks against the rights of 55,000 Croatian consumers with converted loans – appealed the Association.

Meanwhile, the Ministry of Finance also commented yesterday, emphasizing that the agreement reached between the state and the banks regarding the suspension of arbitration proceedings as of June 30, 2021,’does not affect the relationship between credit institutions and citizens’ and does not contain financial obligations for the budget or Croatian citizens.

The Government of the Republic of Croatia and OTP Bank Plc, Erste Group Bank AG, Raiffeisen Bank International AG and Raiffeisenbank Austria d.d., UniCredit Bank Austria AG and Zagrebačka Banka d.d., Intesa Sanpaolo Holding Internacional Luxembourg and Privredna banka Zagreb d.d. and Sberbank Europe AG and Sberbank d.d. Zagreb informed the public on July 5, 2021, that as of June 30, 2021, four arbitration proceedings initiated by OTP Bank Plc, Erste Group Bank AG, Raiffeisen Bank International AG and Raiffeisenbank Austria d.d., UniCredit Bank Austria AG and Zagrebačka Banka d.d. against the Republic of Croatia before the International Centre for Settlement of Investment Disputes (ICSID) were suspended, and that on the same date, Intesa Sanpaolo Holding Internacional Luxembourg and Privredna banka Zagreb d.d. and Sberbank Europe AG and Sberbank d.d. Zagreb, which had announced the possibility of initiating such proceedings, finally renounced such possibilities.

This also referred to the proceedings that Raiffeisenbank International AG and Raiffeisenbank Austria d.d. conducted at the Commercial Court in Zagreb, the Ministry of Finance reminded.

Tagged: