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NLB's response to the decision of the Constitutional Court to suspend the Law on limitation and distribution of foreign exchange risk between creditors and borrowers concerning loan agreements in Swiss francs

The Constitutional Court of the Republic of Slovenia adopted a decision on 10 March 2022 to suspend in whole the implementation of the Law on limitation and distribution of foreign exchange risk between creditors and borrowers concerning loan agreements in Swiss francs (the Law). The decision has been adopted unanimously. The implementation of the law has been suspended until the final decision of the Constitutional Court on the conformity of the Law with the Constitution. During this time the deadlines set for individual liabilities of banks do not apply.

“We believe that the Constitutional Court will establish the inconsistency of the Law with the Constitution and annul it in its entirety. In NLB, which together with eight other banks filed an initiative to review the constitutionality of the Law, we have repeatedly emphasized that the Law is unconstitutional in several respects, as it retroactively interferes with valid contractual relations, as well as violates the principles of legal security, equality, the right to private property and to free economic initiative. In addition, the Law is contrary to the EU’s acquis,” commented NLB’s CEO Blaž Brodnjak. 

The Constitutional Court decided to treat this matter absolutely preferentially. Until the final decision of the Constitutional Court on the constitutionality of the Law is made, the NLB will act in accordance with the applicable legislation and courts’ decisions, and will, at the same time, exercise all legal remedies at its disposal. A separate request for the review of the constitutionality of the Law was also submitted by the Bank of Slovenia.

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