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 rateThe fixed conversion rate was determined on 12 July 2022 and is HRK 7.53450 for EUR 1.
Conversion rulesMonetary 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).
Validity of contracts and other legal instrumentsThe 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 contractsAfter 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.
- interest rate remains the same as agreed, and the change in the amount of the interest rate depends on changes in the EURIBOR value.