EURO: The principle of legal instruments continuity

In 2023, the euro became the official currency of the Republic of Croatia. Mentioned made the new currency the official monetary unit and legal tender in Croatia.

With the above, it is significant to mention the rules and changes related to payment accounts.

Recalculation of accounts funds

Amounts on deposit, savings and transaction accounts, other payment accounts, payment instruments and other records system automatically convert from kuna to euro. The conversion was carried out free of charge with the fixed conversion rate application and by the conversion rules. Also, the unique account number is not changing.

The principle of legal instruments continuity

We emphasised that the euro introduction does not affect the validity of existing legal instruments. The principle of instruments continuity stipulates that legal instruments, existing contracts and other legal instruments containing kuna are still valid. In the mentioned documents, Kuna amounts are considered amounts in euros (with the application of a fixed conversion rate and conversion rules).

The above also applies to credit agreements concluded in kuna. The loan agreement with the agreed fixed interest rate (after the euro introduction) will not change. In the case of loans with a variable interest rate, the interest rate linked to some of the existing parameters in kuna remains unchanged, and the corresponding euro parameter applies to such contracts. The Law on the euro introduction as the official currency in the Republic of Croatia stipulates that in case of adjustment of the variable parameter, the interest rate paid by the citizen will not increase.