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The Government of the Republic of Serbia

In the service of citizens

State will also subsidise housing loans indexed in Swiss francs

Belgrade, 2 March 2007

Serbian Minister of International Economic Relations and coordinator of the Ministry of Finance Milan Parivodic said today that that housing loans connected to the Swiss franc are much more favourable for housing loan beneficiaries than those indexed in euros.

Parivodic told Tanjug news agency that under a loan agreement indexed in Swiss francs, the client wishing to change indexation into euros can do so at any point.

He explained that after the change which costs up to €2,000, there is no more danger in the event that the exchange rate of the Swiss franc changes against the euro, and therefore against the dinar too.

The Minister recalled that the government decided yesterday to also subsidise loans indexed in Swiss francs.

The most important effect is that unlike with loans indexed in euros, they will eventually save around €14,000 for loans up to €50,000 and €28,000 for loans up to €100,000 for the period of 30 years, which expressed in monthly installments is less by €48 or €96 respectively, Parivodic said. Switzerland is surrounded by countries that use the euro and its currency changes only slightly against the euro, the Minister said and once again reiterated that chances for citizens to benefit from indexation in francs are greater than the danger from changing exchange rates since beneficiaries can switch their loan contracts and relate them to the euro.