INFORMATION ABOUT THE INTRODUCTION OF THE EURO AS THE OFFICIAL CURRENCY OF THE REPUBLIC OF CROATIA AS OF 1 JANUARY 2023

23 September 2022

For the purpose of providing timely information to our clients about changes in HBOR’s operations due to the introduction of the euro as the official currency, below we provide some of the most important information:

FIXED CONVERSION RATE

The fixed conversion rate was determined on 12 July 2022 and is HRK 7.53450 for EUR 1.

CONVERSION RULES

Monetary amounts in kuna are converted by applying the whole figure of the fixed conversion rate, and the obtained result is rounded to two decimals in accordance with the following mathematical rules for rounding:

if the third decimal place is less than five, the second decimal place remains unchanged (e.g. HRK 100 = EUR 13.27228, rounded to EUR 13.27) and
if the third decimal is equal to or greater than five, the second decimal is increased by one (e.g. HRK 50 = EUR 6.63614, rounded to EUR 6.64).

The conversion is provided free of charge.

VALIDITY OF CONTRACTS AND OTHER LEGAL INSTRUMENTS

The introduction of the euro does not affect the validity of existing contracts and other legal instruments expressed in kuna, and it will therefore not be necessary to sign addenda to existing contracts and other legal instruments.

Loans in kuna will be automatically converted into euro amounts at a fixed conversion rate and become loans in euros. Loans contracted with the currency clause in EUR remain further expressed in euros without the application of the currency clause and in accordance with the terms and conditions of the valid contract.

INTEREST RATES IN LOAN CONTRACTS

After the introduction of the euro, interest rates on loans contracted until 31 December 2022 will remain unchanged.

Fixed interest rate loans:

interest rate for any loan currency remains the same as initially contracted.

Variable EURIBOR interest rate loans:

interest rate remains the same as agreed, and the change in the amount of the interest rate depends on changes in the EURIBOR value.

PAYMENTS

All requests for loan disbursement in HRK received before 1 January 2023 that have to be made after that date, will be made in euros with the application of a fixed conversion rate.

INDIVIDUAL NOTIFICATIONS

Individual notifications about the implementation of conversion will be sent to our clients with loans in kuna no later than 31 January 2023.

INFORMATION ABOUT INTRODUCTION OF THE EURO IN HBOR

All information about the introduction of the euro can be obtained by sending an inquiry to: hbor@hbor.hr.