ro fr
universul juridic magazin

Foreign currency risk, hardship clause and conversion of loans in foreign currency

Through its decision on the unconstitutional character of the law on Swiss franc loan conversion, the Constitutional Court of Romania has opened the possibility to enforce hardship on foreign currency credit agreements regulated by the Civil Code of 1864, soon after its previous decision conditioning the application of the law on datio in solutum by a judicial decision declaring the occurrence of hardship. The present paper consists of a critical analysis on the specific elements of foreign exchange hardship, with a specific view on its pre-requisites, as well as an analysis of foreign currency loan conversion as a specific means of adapting the contract.