24
Wed, Apr
22 New Articles

The Buzz in Slovenia: Interview with Katarina Kresal of Miro Senica and Attorneys

The Buzz in Slovenia: Interview with Katarina Kresal of Miro Senica and Attorneys

Slovenia
Typography

The recent buzz in Slovenia was all about the eagerly-awaited decision of the country’s Supreme Court regarding Swiss franc loans, says Miro Senica and attorneys Partner Katarina Kresal. That decision – which has since been followed by a few more – was finally issued at the end of 2018.

“In the past many people took credits in Swiss francs,” she explained. “The following drastic shift in the value of the francs resulted in problems. People lost a lot of money and the credits became unbearable, leading to lawsuits.”

There was some controversy about how to treat these cases, Kresal reported: whether the loan contracts should be nullified or respected. In its first decision, the Supreme Court declared that there will be no general rule, and that “these cases shall be treated one by one.” According to her, “the Court explained that the cases cannot all be put on the same footing, because the agreements are very different, so they have to go through the whole system of the legal review to be decided.” She expresses her opinion that “consumers should not lose everything and it is not fair for them to start paying a loan over again despite the banks’ obligation to explain and disclose every aspect of a loan – both positive and negative – to the consumer, which was also outlined by the Supreme court.” 

Kresal notes that, as another problem, the requirements of the reformed Prevention of Money Laundering and Terrorist Financing Act adopted in 2016 are starting to be felt on the market. “When it comes to deadlines, requirements such as customer due diligence, reporting to the Office of Money Laundering Prevention or conducting risk assessments of companies involved can delay otherwise transparent transactions or even discourage clients from doing further business in Slovenia. These are the problems that all the EU countries are facing, but some countries went through them more smoothly,” she says. 

Otherwise, things in Slovenia are proceeding normally, Kresal reports. “Slovenia is becoming a stable country,” she smiles. “Of course, there were years of financial crisis, but now it has stabilized with respect to political decision making, the growth of the economy, and the stability and predictability of the legal system.” According to her, this stability contributes to the calmness of the market and attracts foreign investment. “Now we see even local companies becoming bold, and it is very beneficial for the economy,” she says. In the past few years, she says, she has noticed growth in the real estate market and the hospitality industry. “It is still not as open as in some other countries and our market still tends to be a bit conservative in respect to selling companies and properties to foreigners, but this is significantly changing now,” she says. “The atmosphere in the market is positive.”

Finally, Kresal says, at the end of 2018, Nova Ljubljanska Banka was finally privatized after many years. “This is very significant for Slovenia,” she reports, "because Nova Ljubljanska Banka is a systemically important bank” she explains. “It has already shown positive effects on the stability of the market and the stability of the banking system.” According to Kresal, this will encourage new transactions, and it already signals that Slovenia is open for new investments.

Slovenia Knowledge Partner

Who we are

Karanovic & Partners is a regional legal practice in Southeast Europe with tradition spanning two decades and cooperating offices in Serbia, Croatia, Slovenia, Montenegro, Macedonia and Bosnia & Herzegovina. With more than 100 attorneys at law cooperating across the region, we take pride in our work, dedication and understanding of our clients' industries and needs.

What we do

We work with some of the most respected and reputable businesses in the world, banks, as well as governments, state-owned entities, startups and NGOs. We see our clients as long-term partners.

We focus on straightforward solutions and tailor-made advice. Lawyers cooperating with us are fully immersed in our clients’ culture and industry to ensure that the work is delivered intelligently and reliably. 

What sets us apart?

In our company culture, excellence is a must. We are reliable, adaptive and fast.

Karanovic & Partners operates under the “one team” principle, combining our regional reach and local know-how to deliver coordinated legal advice necessary for achieving our clients’ goals.

All News about, and Legal Analysis by, Karanovic & Partners can be found here.

Firm's website: https://www.karanovicpartners.com/

 

Our Latest Issue