Milanovic says would think twice before quashing laws on CHF loans


Prime Minister Zoran Milanovic has said that if he were in Constitutional Court judges’ shoes, he would think twice before quashing laws regulating the status of holders of loans pegged to the Swiss franc.

“I would think very carefully and take a deep breath before changing or declaring as unconstitutional the decision that was supported by all members of Parliament, including those that are responsible for this situation – those from the Croatian Democratic Union (HDZ),” Milanovic said in an interview with the regional TV network N1 on Tuesday evening when asked what would happen if the Constitutional Court quashed the laws.

The PM recalled that the parliament adopted the Constitution with a two-thirds majority vote while the laws on Swiss franc-indexed loans were adopted unanimously.

“The Constitutional Court’s role here is to protect the minority from the terror of the simple majority that runs the parliament and the government. Our majority is a simple majority and the Constitutional Court is there to supervise it… It is actually there to protect the weaker side, the minority in the parliament. But when all MPs say that something must be changed… I don’t know, we never had a situation like this before.”

He noted that the said laws had been passed with a majority greater than the majority needed to elect Constitutional Court judges.

Asked why the government had not resolved the problem of such loans earlier and if it was an election move, Milanovic said that the government was one and a half years into its term when it fixed the interest rate on such loans and later fixed the kuna-CHF exchange rate for those loan holders.

He noted that the problem had been inherited from the HDZ government, which he said had failed to prevent the issuing of such “toxic” loans.