Switzerland's shock decision to remove the cap on its currency spread panic Thursday among Croatian homeowners with mortgages in the franc who will see their monthly payments jump.
The Swiss central bank on Thursday ended its bid to artificially hold down the value of its currency, sending it rocketing almost 30 percent against the euro.
The Franak association of people who have taken out loans pegged to the Swiss currency has said that there are around 60,000 loans pegged to the franc in Croatia and that if the currency continues to appreciate, this could affect the lives of between 200,000 and 300,000 people.
Finance Minister Boris Lalovac said after talks with bank representatives on Friday that they were willing to help solve problems faced by their clients who had taken out loans pegged to the Swiss franc.
"The banks are willing to help," Lalovac said, adding that various options were put forward.
The minister said that he expected banks, after mutual consultations and consultations with their legal services, to come forward with a joint solution.
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