The objective of the fixed exchange rate loan system is to cushion the impact of the substantial volatility of the exchange rates of certain foreign currencies and make more calculable the situation of FX debtors. People involved can request the scheme from this week, starting 2 April 2012, from the financial institution which has provided the loan.

According to the conditions of the new fixed exchange rate loan system, the difference between installments calculated at a fixed exchange rate and the installments which are payable according to the actual exchange rate will be booked at two separate accounts. At one of them the difference between the principal repayments and at the other the interest repayment liabilities according to the fixed rate scheme and the actual exchange rate will be registered. Debtors are exempt from paying the latter.

The joint capital account which registers the liabilities of a customer will charge interest on the basis of interbank rates and consequently at a discounted rate.

A debtor who albeit assuming more difficulties but can still pay the installments in spite of the higher Swiss Franc exchange rate had better continue to repay according to the original contract conditions. Therefore, the fixed exchange rate loan system is the most optimal solution for debtors who have been in such a situation by now which make it impossible for them to repay their debt in the near future.

(Ministry for National Economy)